Punch misses deadline to launch its restructure

By James Wallin contact

- Last updated on GMT

Related tags: Restructuring, Debt, Bankruptcy, Punch taverns

Punch Taverns has said it needs more time to implement its logn-awaited restructuring
Punch Taverns has said it needs more time to implement its logn-awaited restructuring
Punch Taverns has delayed the launch of its £2.3bn restructuring to allow time for further talks.

The company now has a window of ten business days to implement its proposals. In a statement released this morning it said the board believed the new deadline would be met but stressed there could be “no certainty that a restructuring will be launched within this period”.

Last month Punch noteholders voted in favour of the company’s requests to waive its covenants with a condition that “certain milestones” were met, including the restructuring being launched today.

Under the proposals Punch’s debt would be converted into shares in a debt-for-equity swap, while creditors would be allowed to buy shares in the company at a discounted rate. It would mean current shareholders owning 15% of the company.

In this morning’s statement the company said: “Punch announces that the launch of the restructuring has been delayed, as some additional time is required to conclude discussions between certain stakeholders, and for the documentation to be finalised.  The board believes that a restructuring on terms which are broadly similar to those announced on 26 June 2014 can be launched within the 10 business day cure period.

However, there can be no certainty that a restructuring will be launched within this period.  The board continues to believe that a consensual restructuring is required to avoid a near-term default in the Punch A and Punch B securitisations, which would have material adverse consequences for all stakeholders and, in particular, for shareholders.”

Related topics: Punch Pubs & Co

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Punch Must Be Desperate

Posted by Roger Clarke,

Punch must be desperate, I have had a Punch pub for 10 years and always wanted to buy the freehold but a few weeks ago they sold it to property developers without me even knowing, first I heard was when the new owners walked in and said 'they own this pub'

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Posted by Tony Stout,

I may be mistaken, but I always thought the if a Limited Company continued to trade, knowingly insolvent (debt £2+billion), the directors were personally liable for the debts of the company.
If I am right, I feel sure that the property and assets of the directors are not in their own name.
Am I being cynical?

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excessive values

Posted by Brian Jacobs,

Even if the debt falls to 1.7 billion and the number of pubs fall to 3500 the borrowing will still average about £475,000 per pub which according to Punch would only earn about £73,000 a year if the pubs were free of tie and owner operated. That makes the borrowing a nonsense because the value is not there.

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