Bank of Cyprus Public Company LTD (BACPY)

[Enterprising Investor]

Bailed-in Bank of Cyprus gets new board after capital issue (11/20/14)

Reuters) - Cypriot lender Bank of Cyprus appointed a new board of directors on Thursday after successfully raising capital from U.S. and European investors this year.

Bank of Cyprus raised 1 billion euros in fresh capital from investors including U.S. financier Wilbur Ross and the European Bank for Reconstruction and Development last August.

Josef Ackermann, former CEO of Deutsche Bank, was elected chairman of the bank. He was recommended by Ross, who also took up a position as vice-chair with Russian businessman Vladimir Strzhalkovskiy on the bank's board at an annual general meeting on Thursday.

In early 2013, Bank of Cyprus became the first bank in the euro zone compelled to seize investors' deposits to stay afloat as a condition for a 10 billion euro bailout Cyprus received from the European Union and International Monetary Fund.

Junior bondholders, who saw about 1.2 billion euros of their cash wiped out, staged a demonstration outside the bank's Nicosia headquarters. On several occasions protesters tried to push their way into the building, banged on the glass walls of the bank and overturned flower pots outside.

It did not disrupt proceedings.

"I worked three jobs, put my money with that bank and now I don't have money to eat," shouted one aggrieved bondholder. Others chanted "come out you thieves".

The bank says it was compelled to seize 47.5 percent of depositors' cash over 100,000 euros to recapitalize last year. It was under the administration of the Cypriot Central Bank for several months when the arrangement was made, and it was not a decision taken by the bank.

"I sincerely apologize for what happened," outgoing chairman Christis Hasapis told shareholders.

http://www.reuters.com/article/2014/11/20/us-cyprus-bankofcyprus-idUSKCN0J41VI20141120?type=companyNews