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

Punch gains more support in restructuring bid

Pub group inches towards the requisite number of shareholders onside to allow it to financially restructure

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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