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A proposal from Metro's bondholders offering a 600 million pound ($733.98 million) capital injection is viewed by the bank as handing over too much control, and equity holders are being consulted, the source said.

https://www.reuters.com/business/finance/metro-bank-discuss-funding-with-shareholders-this-weekend-source-2023-10-06/

Metro Bank bondholders offer lender £600mn capital package

Group made proposal after bank suffered setback in effort to secure regulatory relief on mortgage business

A group of Metro Bank bondholders contacted the UK lender’s board on Monday offering a £600mn capital injection, but the company has yet to accept the offer, according to two people familiar with the matter.

The challenger bank sent representatives for the consortium of bondholders a letter on Friday morning that acknowledged the offer, which is still on the table, according to one of the people. The bondholders’ offer came before Metro approached investors this week about a separate fundraising plan for a similar amount to shore up its balance sheet.

Https://www.bloomberg.com/news/articles/2023-10-06/metro-bank-s-hectic-week-came-after-months-of-slowburn-concern

"Top staffers and board members alike have spent months weighing what they will do when a £350 million ($427 million) bond is no longer allowed to count toward key capital requirements beginning next year. For starters, they’d hoped to convince regulators to let them use a new, internal model for calculating risk-weighted assets that would likely boost the firm’s capital ratios. This summer, existing investors were being sounded out about potential options for raising capital."

At least 6.89% of the shares were sold by someone who is betting on the share price falling. There's a day lag, so it could be that they closed or reduced their positions today. We'll find out end of play Monday.

As of 6th October 2023

More likely it'll be clear whether a bank is going to bid on the loan book and/or whether they have any acquisition offers.

50p - Something is afoot

Weekend makes this annoying. I suspect Sunday night is when we'll start hearing whispers in the press.

Perhaps instead of buying the loan book one of the banks is looking at taking over the bank. £3bn for the loan book or £200 or so million for the whole bank and then spend a £billion to restructure and you can now have your cake and eat it to. Obviously if there's a takeover play happening we won't hear about it in the rumours because whoever is leaking to the press only cares about leaking negative lies.

Shorts are closing their positions?

They shoulder the blame for how the messaging has been managed but the press have been very gossipy. There's also a heavy dose of wanting the bank to fail so they have things they can talk about.

All businesses do this, it's risk management.

The press coverage is wild. Rumours are being treated as facts, like how the raise is urgent and how it's £600m.

Dan and the Board need to sack the person leaking information

Still leaking

https://news.sky.com/story/troubled-metro-bank-kicks-off-3bn-mortgage-book-sale-12977581

What a hatchet job this has been

Now the FT article says:

The bank’s “chairman attended a longstanding, pre-diarised meeting with the PRA this morning”, a Metro spokesperson said.

I think they sell part of their loan book now to another bank and then show profit albeit a smaller amount and then aim for growth next year but what the board needs to do is communicate their intentions. Set out a plan for when they'll finance, right now they seem like opportunists.

We don't know because Dan likes to sit in his office and avoid shareholders.

They have another £250m of notes that needs refinancing in 2028(?).

It could be they want £250m and they planned on announcing the raise after the full year results which should show them profitable or at break even and the funds were to drive growth.

The £350m isn't even due until October 2025 according to the latest RNS.