Wednesday, May 27, 2009
B&B default.
Bloomberg: Bradford & Bingley to Skip Subordinated Bond Interest
May 27 (Bloomberg) -- Bradford & Bingley Plc, the U.K. mortgage lender taken over by the government, said it won’t make interest payments on 325 million pounds ($520 million) of subordinated bonds.
The bank will skip payments due in either June or July on 50 million pounds of 11.625 percent perpetual notes, 125 million pounds of 6.625 percent bonds due 2023 and 150 million pounds of floating-rate securities due 2054, according statements sent after the market closed yesterday.
Posted by flintster1994 @ 03:25 PM (791 views) Add Comment
6 Comments
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1. 51ck-6-51x said...
You book a B&B, then in the morning you find there is no breakfast, and your back is itchy.
2. little professor said...
"skip payments?" Isn't that a default?
Interesting news today that B&B, A&L and Abbey are all going to lose their identity and be rebranded Santander.
3. 51ck-6-51x said...
LP
- No it is not a default, as it would usually be on non-deferrable debt payments - as the article clarifies near the end - due to the sovereign involvement (!)
It may, however, be classed a technical default and trigger payments on CDS contracts.
4. drewster said...
Skip their payments, default on their debts, and change their names.... sounds like an escape plan for many!
5. 51ck-6-51x said...
A more enlightening article may be found at Citywire.
6. japanese uncle said...
Bonus of the directors must be repoed then.