Valuation of 13 September 2018 under the Danish Act on Restructuring and Resolution of Certain Financial Businesses
On 13 September 2018 Finansiel Stabilitet ceased control of Københavns Andelskasse (The Cooperative Bank) in accordance to the rules under the Danish Act on Restructuring and Resolution of Certain Financial Businesses.
After the completion of a public procurement, H.C. Krogh from PwC was appointed, in the beginning of February 2019, as the independent valuer to complete the final valuation for the use of Finansiel Stabilitet’s completion of the final resolution measures. This valuation is now final and public on Finansiel Stabilitet’s homepage (the valuation report).
The valuation report functions as a starting point for the final completion of the resolution measures regarding Finansiel Stabilitet’s takeover of The Cooperative Bank.
The conclusion of the valuation report states that, at the time of the takeover, there must be made impairments for loss absorption of total 73.5 million DKK, here of impairments of simple creditors account for 53.8 million DKK and 19.7 million DKK is subordinated capital.
The valuation report thus determines that the losses from The Cooperative Bank was of a magnitude that do not allow coverage of share capital and subordinated creditor claims. Finansiel Stabilitet’s preliminary impairment charges (bail-in) of these claims are thereby final. Furthermore, the claims of simple and unsecured creditors will only be partly impaired, since this group of creditors will receive a payout of 34 percent of the previous tentative impairment of 100 percent.
Finansiel Stabilitet’s preliminary bail-in of eligible depositors will in accordance to cf. § 13(2) under the Danish Act on Restructuring and Resolution of Certain Financial Businesses be repaid in full, since the valuation report determines that these should not contribute to loss absorption.
Furthermore, there is full coverage of secured deposits, and thus the Danish Guarantee Scheme for Depositors and Investors will not contribute with resources in the context of Finansiel Stabilitet’s takeover and winding-down of Københavns Andelskasse under kontrol.
For further information, please contact:
Henrik Bjerre-Nielsen, CEO, tel. +45 21 14 21 11 or
alternatively via press contact, tel. +45 24 76 35 90,
Appendix: valuation report