max temp: 12°C

min temp: 6°C

ESTD 1874 Search

East Anglia: Punch Taverns boss urges creditors to agree a deal to avert default

11:10 28 February 2014

Punch Taverns has renewed its warning that it faces default unless creditors agree a deal to restructure its debt.

Punch Taverns has renewed its warning that it faces default unless creditors agree a deal to restructure its debt.


Pub owner Punch Taverns today repeated its warning that it faces the prospect of default unless creditors agree to a restructuring of its debt.


Earlier this month, the group called off a vote on its latest proposals amid continued objections from bondholders, and agreed to a fresh round of consulation a process it began more than a year ago.

But in a trading update today, Punch said failure to achieve a “consensual restructuring” was expected to result in it failing to meet the next round of tests on its securitised debt, with default likely to follow.

The group said in a statement: “As announced on February 12, 2014, Punch has extended the period of engagement with stakeholders and the board remains of the view that a consensual restructuring is in the best interests of all stakeholders.”

It added: “In the absence of a consensual restructuring, failure to achieve the second quarter DSCR (Debt Service Cover Ratio) financial covenant in the relevant securitisation when reported on April 15, 2014 would result in a default in the relevant securitisation within a further 30 days.

“Moreover, failure to effect a restructuring in the near-term will lead to a default in both the Punch A and Punch B securitisation, which is expected to have a material negative impact on the business, including material dissynergies and disruption to the business.

“As a result, it is in the interests of all parties to agree a consensual restructuring ahead of the next covenant reporting date of April 15, 2014, and to put in place a sustainable long-term capital structure for the securitisations.”

Punch is Britain’s second biggest pub owner with around 4,000 leased and tenanted properties, including many in East Anglia where, as a result of mergers and acquistions, it includes a number of former Tolly Cobbold pubs.

In its trading update, for the first 28 weeks of its current finiancial year, Punch said it had continued to perform in line with management expectations, with core estate like-for-like net income for the half year expected to be broadly in line with the 1.5% growth reported for the first 20 weeks to January 4.

“Management expectations for the full year remain unchanged with the core estate expected to deliver like-for-like net income growth of up to 1%,” it added. “The pub investment and non-core pub disposal programmes remain on track with full year capital investment expected to be c£45million and disposal proceeds anticipated to be c£100m.”

Executive chairman Stephen Billingham said: “We are convinced that a consensual restructuring is by far the best outcome for all stakeholders, and we will continue to work with all stakeholders to reach a consensus on the restructuring. No-one can be in any doubt about the consequences of failing to agree a consensual deal.

“We call on all parties to work together constructively to agree a restructuring. Everyone has something to gain by agreeing a restructuring that will retain the material financial synergies and provide certainty and stability for the business from which all stakeholders will benefit.”

Related articles



  • Difficult to have any sympathy with this and similar firms who must take a lot of the blame for the decline of our traditional pubs by their greed.

    Report this comment


    Friday, February 28, 2014

  • Any chance of this article being re-written in plain English please...? Have I understood correctly that punch are essentially asking to be let off paying their debts...?

    Report this comment

    Big Daddy

    Friday, February 28, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Delegates from the ABP Marine Conference at ABP, Old Custom House, Port of Ipswich.

Some of best marine minds in the country were in Ipswich this week as harbour masters, dock masters and marine managers gathered for an annual conference.

DFS is celebrating record results.

Sofa chain DFS Furniture has hailed a record set of results as Britain’s buoyant housing market and growing consumer confidence boosted sales.

The Bank of England Monetary Policy Committee is expected to keep interest rates at 0.5%.

The Bank of England is expected to keep interest rates on hold today amid mounting concern over a slowdown in the economy.

Owner and head chef of Sweet P's, Pierre Rollins.

Soul food restaurant Sweet P’s is due to reopen next week after a devastating kitchen fire six months ago.

The new board members at employee-owned social enterprise Leadiing Lives who were elected at its AGM.

More than 50 jobs have been saved in Suffolk and north-west Essex following the closure of care support charity Crossroads Care East Anglia.

The Great House in Lavenham has been awarded three rossetts from the AA. Left to right, Martine and Regis Crepy, Enrique Bilbault, Swann Auffray, David Castro, Guillavme Dericq.

An award-winning Suffolk restaurant has officially been recognised as one of the best in the country.

George Bradley of Suffolk Secrets.

The belated arrival of settled weather in mid-September has helped to deliver an “Indian Summer” boost for Suffolk Secrets, one of the county’s leading holiday lets businesses.

Some of SABMiller's beer brands.

Brewing giant Anheuser-Busch InBev today unveiled another improved offer for rival SAB Miller.

Tesco  has revealed a 70% plunge in half-year earnings for its UK and Ireland business.

Supermarket giant Tesco revealed a 70% fall in half year earnings for its UK and Ireland business despite seeing an improvement in under-pressure sales.

The Cask Report has highlighted the importance of real ale to the the pub trade.

Drinkers of real ale are a “lifeline” for Britain’s hard-pressed pubs sector, according to a new study.

Most read

Most commented

Topic pages