Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 17°C

Search

East Anglia: Punch Taverns boss urges creditors to agree a deal to avert default

11:10 28 February 2014

Punch Taverns has renewed its warning that it faces default unless creditors agree a deal to restructure its debt.

Punch Taverns has renewed its warning that it faces default unless creditors agree a deal to restructure its debt.

Archant

Pub owner Punch Taverns today repeated its warning that it faces the prospect of default unless creditors agree to a restructuring of its debt.

Earlier this month, the group called off a vote on its latest proposals amid continued objections from bondholders, and agreed to a fresh round of consulation a process it began more than a year ago.

But in a trading update today, Punch said failure to achieve a “consensual restructuring” was expected to result in it failing to meet the next round of tests on its securitised debt, with default likely to follow.

The group said in a statement: “As announced on February 12, 2014, Punch has extended the period of engagement with stakeholders and the board remains of the view that a consensual restructuring is in the best interests of all stakeholders.”

It added: “In the absence of a consensual restructuring, failure to achieve the second quarter DSCR (Debt Service Cover Ratio) financial covenant in the relevant securitisation when reported on April 15, 2014 would result in a default in the relevant securitisation within a further 30 days.

“Moreover, failure to effect a restructuring in the near-term will lead to a default in both the Punch A and Punch B securitisation, which is expected to have a material negative impact on the business, including material dissynergies and disruption to the business.

“As a result, it is in the interests of all parties to agree a consensual restructuring ahead of the next covenant reporting date of April 15, 2014, and to put in place a sustainable long-term capital structure for the securitisations.”

Punch is Britain’s second biggest pub owner with around 4,000 leased and tenanted properties, including many in East Anglia where, as a result of mergers and acquistions, it includes a number of former Tolly Cobbold pubs.

In its trading update, for the first 28 weeks of its current finiancial year, Punch said it had continued to perform in line with management expectations, with core estate like-for-like net income for the half year expected to be broadly in line with the 1.5% growth reported for the first 20 weeks to January 4.

“Management expectations for the full year remain unchanged with the core estate expected to deliver like-for-like net income growth of up to 1%,” it added. “The pub investment and non-core pub disposal programmes remain on track with full year capital investment expected to be c£45million and disposal proceeds anticipated to be c£100m.”

Executive chairman Stephen Billingham said: “We are convinced that a consensual restructuring is by far the best outcome for all stakeholders, and we will continue to work with all stakeholders to reach a consensus on the restructuring. No-one can be in any doubt about the consequences of failing to agree a consensual deal.

“We call on all parties to work together constructively to agree a restructuring. Everyone has something to gain by agreeing a restructuring that will retain the material financial synergies and provide certainty and stability for the business from which all stakeholders will benefit.”

Related articles

2 comments

  • Difficult to have any sympathy with this and similar firms who must take a lot of the blame for the decline of our traditional pubs by their greed.

    Report this comment

    amsterdam81

    Friday, February 28, 2014

  • Any chance of this article being re-written in plain English please...? Have I understood correctly that punch are essentially asking to be let off paying their debts...?

    Report this comment

    Big Daddy

    Friday, February 28, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

A 50 year-old man who died following a road traffic collision yesterday has been named as Stewart Mackenzie from Westleton.

Today we launch the first in a series of features looking back at Ipswich’s past - its famous faces, prestigious landmarks and the defining moments that helped shape the town.

A trio of older motorists from Suffolk have proved it is never too late to become a better driver – and urged other road users to follow in their tracks.

Community leaders say the year-long trial to allow cycling on Felixstowe’s promenade has not yet started – and people riding their bikes are breaking the law.

A man has contacted police after an image was released following an alleged assault in Bentley last month.

A Suffolk cystic fibrosis sufferer who used exercise and bodybuilding to boost his lung capacity is “delighted and relieved” after successfully completing his first ever half-marathon.

A teacher at a former Suffolk boarding school who was jailed for 21 years for sexually abusing eight pupils is seeking leave to appeal his conviction.

A restaurateur has praised the ‘honourable’ parents of an Ipswich thief involved in a ‘dine and dash’ after they paid the £147 bill their daughter and her fellow diner left behind.

A secret bidder last week paid £6,200 for the iconic Ed Sheer-Ham artwork from the Pigs Gone Wild trail and today we can reveal the real buyer was actually Suffolk singer and star of the new Bridget Jones movie, Ed Sheeran.

Alex Jackson tried to stand up after the seemingly innocuous tackle. The 6ft 1in, 15-stone outside centre was playing rugby for the first time in three years, returning to Hadleigh Rugby Club’s second team at the age of 25.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24