Punch willing to hold further talks as lenders reject latest restructuring plan

STAFFORDSHIRE pubco Punch Taverns has said it remains willing to talk to its creditors about the group’s restructuring proposals.

The move comes after senior lenders to the company rejected the plan put forward by the Punch board.

Punch said earlier this month that it was implementing its complicated Punch A and Punch B debt restructuring strategy to prevent the business from having to default in the near term.

The company said it was launching the capital restructuring of its A and B securitisations following a 14-month review of the business structure and discussions with stakeholders.

Punch said the purpose of the discussions had been to reach an agreement on the terms of a consensual restructuring for both securitisations.

“The board remains clear that a restructuring of the securitisations is required in order to create a sustainable capital structure.  Failure to implement a consensual restructuring is expected to lead to a default in the relevant securitisation in the near-term,” it said.

However, the group of lenders, represented by a special committee of the Association of British Insurers, said they could not agree with the Punch strategy and have threatened to vote against it at a special meeting next month unless the pubco revises its plans and opens further talks.

Punch said in a statement it “noted” the objections, adding “the company continues to be available to discuss with creditors their views of the restructuring proposals”.