West Bromwich Building Society has agreed a deal to convert £182.5m of debt into profit participating deferred shares which give creditors up to 25% of future profits. Dividends pay outs will be at the discretion of directors and creditors have the same 1 vote as any other member but critics argue this is back door partial demutualisation without member approval.

The deal will boost West Brom's solvency and save £13m per year in debt interest payments. The problems at West Brom were caused by misjudged commercial lending, the CEO, Robert Sharpe, has pledged to return to basics, adding, "We are going to be very boring, very safe. It will be steady as you go." - 12 Jun 2009