Swiss and Qatari investment groups are in talks with the Co-operative Bank about a possible takeover.
Interritus Limited and Al Faisal Holding have held several rounds of discussions with Co-op Bank’s board and advisers though the deal is said to be far from done, Sky News reports.
Co-op Bank was valued as worthless in April and is burdened with a number of loss-making loans originating from Britannia Building Society, which it rescued in 2009.
Co-op Bank lost £477.2m in 2016 but holds a number of branches and customers.
The understanding is the investors would take a long-term approach to sorting out the bank.
Interritus’ founding partner Patrick Bettscheider was involved in rescuing major Australian lender Kommunalkredit in 2015.
In May Co-op Bank announced that it requires a £750m capital injection if a buyer cannot be found.