Punch delays restructuring process
Pub company Punch Taverns has announced a delay to its £3.2b restructuring programme, to allow more time for discussions to take place.
In an announcement to the City this morning, the company said it hoped to launch its restructuring process within the next 10 business days.
However it warned that there was "no certainty that a restructuring will be launched within this period."
The news follows a decision by Punch's noteholders to vote in favour of Punch's request to waive its covenants so long as it met certain "milestones", which included a restructuring.
The plan includes measures to allow Punch's debt to be converted into shares. The controversial plan would mean that existing shareholders in the business would only own 15% of the company.
In a statement this morning 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."
