Punch Taverns warns of default if debt restructuring is blocked
PUNCH Taverns reminded bondholders yesterday of its imminent restructuring vote that the company warned rejection of would “have a material negative impact on the business”.
The struggling pub operator announced plans to restructure its £2.3bn debt pile with lenders last month.
“The next few days will be some of the most important in the Company’s history,” said Punch Taverns in a statement. “The Punch Board calls on all parties to vote in favour of the restructuring proposals. Failure to effect a restructuring will lead to a default in the securitisation, which is expected to have a material negative impact on the business.”
The Association of British Insurers, representing creditors with blocking stakes, hit out at the company’s proposal last month, claiming that they had not seen the restructuring plans and only had a limited consultation with Punch.
“We have tried to listen to everyone and find a middle way,” said Punch. Shares in the firm fell 3.5 per cent to 13.75p yesterday.