Punch calls time on plan

Punch Taverns has failed in its attempt to get lenders to back a new plan to tackle its £2.3bn debt. The company has withdrawn its resolution which was due to be put before stakeholders on Friday (14th). In a statement it said, “Following feedback from a range of stakeholders, Punch has decided to withdraw the resolutions which were to be put to the Noteholder meetings convened for 14 February 2014 in order to facilitate a period of further engagement with stakeholders. As previously announced, both securitisations will default without a consensual restructuring. The Board remains of the view that a consensual restructuring is in the best interests of all stakeholders and can be agreed ahead of the next covenant reporting date of 15 April 2014.
The news comes after The Telegraph ran a story quoting a source close to bondholders saying, “The deal on the table fails on three counts, the commercial terms are unacceptable to multiple groups of lenders, the structure of the new notes is flawed, and the documentation is unsignable.”
The decision by Punch means that it is back to the drawing board and to new negotiations with bondholders to finalise a sustainable solution for the business.