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Closing time nears for Punch Taverns restructuring 28 January 2014

It’s back to the drawing board with Punch Tavern’s debt restructuring plan as the major stakeholders were, once again, unsatisfied with the plan.

The previous proposal, released in December 2013, followed over a year of negotiations between Punch Taverns Plc and key stakeholders.

The ABI Senior Noteholder Committee detailed a number of amendments to the pub group’s proposals which, in their eyes, “still need further work to gain approval and would be voted against if published in the form announced.”

The committee does not approve of Punch’s proposal to use all securitisation cash to pay down junior notes at a material premium to market price.

While they would not agree to give the company or any third party a right to cash out senior notes priced at 105, the committee would support a tender using securitisation cash across tranches of notes, priced equitably and fairly.

The noteholders are determined to minimise cash leakage, which is the focus of several of the suggested amendments.

Prepayment of senior notes with reduced spens, a voting fee for senior noteholders, appointment of board observers, and a maximum capex spend are a few of the proposals the committee wants added to the restructuring plan.

A statement from the ABI Senior Noteholder Committee said: “Going forward we continue to believe that a consensual deal is the best way forward for all parties. We believe such agreement is capable of being reached and within the gift of the shareholders of Punch.”



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