There is a chance of losing the entire amount of money, if a Co-op bank bond investors or share investors do not take part in the ballot. The bank has entered an agreement with institutes, which offer to maintain the current income level, for the next 12 years. This will not be implemented, if there are no sufficient investors to vote for it.
Importance of investor voting
Each type of bond will have separate votes. If a set of investors vote against the deal or if the majority of the votes fail to reach a threshold, the entire deal will be foiled. The institutes have agreed to the deal already and few bonds are bought by the investor, making their vote, very essential.
Percentage of voters
For each ballot, a certain percentage of the bond holders must take part. The Pibs bonds require two third of its investors to vote for it. If it does not go through, there will be another voting round, with 1/3rd votes, as a threshold. Except for those who hold their bonds in a nominee account, the investors would have already received the voting forms. For others, the brokers will send, the voting forms. Voting form has to be sent on or before November 29 2013. If it is met by December 6th, then the deal will be accepted with a reduction of 5pc in the maturity payments and income.