Punch asks shareholders for more time to agree restructuring plans
STAFFORDSHIRE pubco Punch Taverns has asked shareholders for more time to enable its restructuring plans to be concluded.
The company said in February it was delaying the implementation of its capital restructuring to allow it more time to talk to stakeholders. It had stated that the business faced a crucial period in its history and unless the restructuring was agreed then there was a possibility it could default in the near term.
It was due to put the plan forward at a meeting on February 14 but opted to delay that so it could hold more talks with stakeholders.
In a further update to the markets today, the firm said it had made progress on the talks but more time was needed in order to reach an agreement.
“Punch has continued to facilitate discussions between stakeholders with a view to reaching agreement on the terms of a consensual restructuring for the Punch A and Punch B securitisations,” it said.
“While progress has been made, further time will be required to finalise the proposals with stakeholders and to permit stakeholders and their advisers to review and comment on the documentation necessary to implement them.”
Punch said that in order to ensure that no default occurred while discussions continued, Punch A and Punch B had given notice convening noteholder meetings for April 29 for the purpose of voting on covenant waiver requests.
The firm reiterated the waivers were necessary to avoid the risk of a near-term default in both securitisations, which in the case of the Punch A securitisation was anticipated as early as May 15, 2014.
The requests include temporary waivers of the Debt Service Cover Ratio covenant and certain other provisions of the securitisation documents. If granted, these will expire at the latest on August 29, 2014. It is a condition of the waivers that a restructuring is launched by June 30, 2014.
