Punch secures vital agreements on waivers so restructuring can proceed

RESTRUCTURING plans by Staffordshire pubco Punch Taverns have been boosted after the group secured full agreement from bondholders to waive the necessary covenants.

The Burton-upon-Trent 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.

At a meeting last month waiver requests were approved at 11 of 16 special meetings which were held. No quorum was present at the five remaining meetings, which were adjourned until yesterday.

Following the meetings, Punch managed to secure the five outstanding Punch A and Punch B agreements it needed.

Had the waivers not been agreed then the Punch A securitisation could have defaulted as early as tomorrow (May 15).

The covenant waivers will expire at the latest on August 29, 2014, and it is a condition of the waivers that a restructuring is launched by June 30, 2014.
 
Talks on the restructuring will now continue and the company is hopeful it can persuade shareholders to agree final terms.