LONDON (ShareCast) - West Bromwich Building Society is in advanced talks aimed at helping it maintain its independence, the troubled firm said Thursday.
The group confirmed earlier rumours that it might convert some of the debt provided
by investors and financial institutions to West Brom into a new form of capital.
"West Bromwich Building Society is in advanced discussions with holders of the Society's subordinated debt to exchange the full outstanding principal amount of the Society's subordinated debt, totalling £182.5m, for a new instrument which will qualify as core tier 1 capital," a statement read.
"Such a transaction would materially strengthen the society's core tier 1 capital ratio as well as improving quality of the society's capital base."
Talk is that savers with West Brom will not lose a penny and it should be business as usual at Britain's eighth-largest building society.
If the discussions are successful the society, which operates 46 branches and has about 350,000 customers, may be able to remain independent or merge with another society.
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