Northern Rock revealed that the proposed restructure would also see a reduction of its balance sheet assets.
It believes that should this proposal be implemented in full, it would result in an independent, well-capitalised, low cost and significantly lower risk mortgage and savings bank.
For this to happen it outlined two distinct 'investment phases.'
The first would focus on stabilisation. It would feature a controlled reduction of its current loan book, preservation of balance sheet capital, and a pay down of the bond funding proposed by HM Treasury to refinance in full the current Bank of England facility and removal of Government support
A large part of this would also see a management restructure. Paul Thompson would take on the role of CEO, with Andy Kuipers assuming that of deputy CEO.
The second phase would see the bank grow its prime lending sector in line with the Company’s ability to raise retail and wholesale funds, scope for dividends and capital returns
This is all subject to Treasury approval.
