West Bromwich Concludes Debt Deal

(BBC) – THE WEST BROMWICH BUILDING SOCIETY has reached an agreement with debt-holders to boost its financial strength.

The society’s difficulties had led to fears it may be broken up; but its conversion of £182.5m of debt into capital should avoid this.

Analysts say this will allow the society, which has announced an annual £48.8m pre-tax loss, to keep its independence — or to merge at some future point.

Savers and borrowers at the West Bromwich will not see any changes in the ways that their accounts and mortgages are operated.

The society now has a financial buffer to absorb losses and avoid insolvency.

… (Telegraph, 13/06/2009) – West Bromwich Building Society: what the changes mean for customers

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