Risk & Economy » Regulation » Punch gains more support in restructuring bid

PUNCH TAVERNS is toasting what is says is growing support for its latest debt restructuring plans, as it attempts to conclude a near two year drive to change its capital structure.

The 4,000-strong pub operator announced its most recent restructuring plans in August, stating it had garnered the backing of stakeholders owning or controlling some 65% of the notes in its Punch A and Punch B securitisations, in addition to around 54% of its share capital.

In April, the troubled pub chain breached its £2.3bn debt obligations.

But today, Punch announced in a statement that it had amassed support of around 72% of the notes across the Punch A and Punch B securitisations and some 54% of its share capital. The uptick emerged after seven holders of junior classes of notes in the Punch A and Punch B securitisations bought class B3 notes issued by the Punch A Securitisation in addition to striking a deal with Morgan Stanley bank.

Its financial woes have dogged the firm for years after it was left nursing a bad hangover from its vast debt mountain and when the worst recession for 70 years led to a dramatic collapse in alcohol sales.

Punch is still due to hold a general meeting to approve the restructuring on September 17.

ITs share price was unchanged in this morning’s trading, at 8.8p, vlauing the busines sat £58.6m by market cap.

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