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Among them are hedge funds and several thousand small-time Italian retail bondholders.
There are also suggestions that a compensation scheme could be set up for retail bondholders forced to take losses.
I'm sorry, but we can't negotiate that way," added Mr. Vázquez, whose group claims to represent more than 7,000 retail bondholders in Argentina.
One of the most prominent New Dealers, William O. Douglas, thought that insiders too often demolished retail bondholders in out-of-court restructuring cases.
Some of those junior investors are Italian retail bondholders – shades of Lincoln Savings and Loan there – which makes that politically unpalatable.
Mark Taber, representing retail bondholders who believe they should be spared a haircut on their investments, said there was a "disgraceful" lack of detail in the Co-op's offer.
Similar(52)
Imagine if a retail bondholder in the General Motors bankruptcy had had to sort through four Chapter 11 plans, each with very different views of the debtor's value and how that value might be achieved.
This week, the judge rejected a similar request by a group of retail G.M. bondholders, which said it represented nearly 2,000 investors.
It causes problems in Italy because so many bondholders are retail savers.
They are also being forced to stop profitable (if risky) activities such as proprietary trading.Rules aimed at ring-fencing retail banks, "bailing in" bondholders and making banks easier to wind up if they fail are also pushing up banks' funding costs and depressing returns.
Bondholders including 30,000 retail investors, largely pensioners, still need to back the deal, without which the bank fears it would fall under control of the Bank of England, or could be nationalised.
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