Allen & Overy (A&O) global financial institutions head Alistair Asher is joining the Co-op as its new group general counsel as the troubled mutual sets out a £1.5bn rescue plan for its banking arm.

Asher, who has spent more than 34 years at A&O, including 26 as a partner, led on the Co-op's merger with Britannia Building Society in 2009, as well as Lloyds' rescue takeover of HBOS in 2008.

The Co-op yesterday (17 June) announced a £1.5bn plan for its bondholders to help recapitalise the Co-op Bank, putting forward a deal which will see the group's junior securities holders offered shares. Asher has been leading the A&O team advising on the debt restructuring plan alongside finance partner Mark Sterling.

The group general counsel position is a newly created role that will become part of the group executive committee, while Asher will also head up the group's legal services business. He will retire from A&O at the start of July.

A&O global corporate co-head Andrew Ballheimer said: "Alistair Asher has been asked by the Co-operative Group to take on a key role in its new senior management team as the Group General Counsel. Alistair will therefore be retiring from Allen & Overy on 1 July 2013 after over 34 years with the firm, 26 as a partner.

"We would like to thank him for the significant contribution he has made during his time at Allen & Overy and wish him all the best in his important new role."

A&O's team on the restructuring deal also includes head of the firm's building societies and mutual practice Richard Slynn, corporate finance partner David Broadley and debt capital markets partner Matthew Hartley. Regulatory, tax and pensions advice is being led by partners Etay Katz, Vimal Tilakapala and Dana Burstow, respectively.

A&O insurance chief Philip Jarvis, is leading on the announced plan to dispose of the Co-operative's general insurance business, which media reports have valued at around £240m.