• From The BBC:

    The loss-making nationalised Northern Rock bank has announced that it will be deferring the interest payments on some of its bonds.A spokeswoman said the move was to “save cash resources” ahead of a proposed reorganisation of the bank. The delay in payment applies to investors who have bought eight different “subordinated notes”. The terms of the bonds allow the bank to do this, but it admitted the investors had been given no warning. “The company has now decided, until further notice, to defer payment of all subordinated debt coupons which the company is entitled to defer,” Northern Rock said in a statement. “The deferral of coupons [interest repayments] by the company will be made in accordance with the existing terms and conditions of the company’s subordinated debt and there is no change to the legal terms of these instruments,” it added. However, the bank refused to reveal who its investors were, and how much money would be saved by deferring the repayments to them. Government pla…

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    Posted by Jon @ 9:50 am

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