max temp: 11°C

min temp: 10°C

ESTD 1874 Search

East Anglia: Punch Taverns noteholders support covenant waiver as debt talks continue

11:11 30 April 2014

Punch Taverns noteholders have voted overwhelmingly in favour of the company's request for a waiver on covenant terms.

Punch Taverns noteholders have voted overwhelmingly in favour of the company's request for a waiver on covenant terms.

Pubs group Punch Taverns is on course to secure waivers to prevent it breaching covenants as talks continue to restructure its debts.

The group said today that 11 meetings of different classes of noteholders under its Punch A and Punch B securitisations had voted overwhelmingly in favour of its waiver request.

However, a further five meetings (four in Punch A and one in Punch B) were adjourned as inquorate after failing to attract instructions from at least 75% of noteholders eligible to vote.

These meetings will now be reconvened on May 13, when a lower quorum of 25% will apply.

Punch is Britain’s second biggest pub owner and has a strong presence in East Anglia, where, as a result of past mergers and acquistions, it includes a number of former Tolly Cobbold pubs.

It has been seeking to achieve a “consensual restructuring” of its debt pile for more than a year and has previously warned that without an agreement, or a waiver, it could become in default of covenant terms - as early as May 15 in respect of the Punch A securitisation.

Earlier this month, Punch reported firsthalf profits “in line with management expectations”.

Revenues for the 28 weeks to March 1 fell to £233.5million, from £243.3m in the corresponding period a year ago, and operating profit declined to £85.6m from £104.3m, largely reflecting restructuring and other one-off costs and impairment losses on the value on its property estate.

Before what Punch classed as “non-underlying items”, there was a pre-tax profit of £49.7m, compared with £26.2m at last year’s half-way stage. However, this year’s figure included a £29.9m contribution from the redemption of loan notes.

And after non-underlying items, including finance costs of £214.7m, Punch was left with a bottom line pre-tax loss of £174.9m, against a loss of £16.7m for last year’s first half.

However, the company insisted that it remained on course to deliver on its business plan and to meet its expectations for full-year profits, with average profit per pub up 4% across its entire estate of 3,956 sites during the first half.

Investment and disposal plans were also on track, it added, with investments completed at 170 of its core pubs, at an average spend of around £90,000, and 140 pubs and other assets having been sold for £51m, £6m ahead of book value.

Search hundreds of local jobs at Jobs24


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

John Dugmore, chief executive of Suffolk Chamber of Commerce, cuts the ribbon to open the new TravelQuest branch in Ipswich, with members of the TravelQuest team.
From left, Vicki Wood, Poppy Brown, John Dugmore, Michelle Thake, Paul Hardwick and Karen Jones.

A Suffolk travel company has expanded with the opening of a second branch.

Terry Hunt, editor of the East Anglian Daily Times, left, and Boshor Ali, chairman of the Bangladeshi Support Centre (BSC), right, with other supporters of the Suffolk BME Business Awards from Ipswich Borough Council, Suffolk Chamber of Commerce, the University of Suffolk and the BSC.	
Photo: Nigel Brown

More than 40 nominations have been received for the inaugural Suffolk BME (Black and Minority Ethnic) Business Awards.

Tim King, group fleet manager at Turners (Soham), left, takes delivery of the firm's newest truck from Eddie Hennessy, regional manager of DAF Trucks UK, representing regional dealership Chassis Cab. 
Photo: Keith Mindham Photography

Suffolk-based logistics company Turners (Soham) Ltd has reported increased annual revenues and profit, and says it is “well placed” for further success despite competitive market conditions.

Sandy Jackson - Mark Westley Photography

British Gas has been forced to backtrack after repeatedly billing a 91-year-old great-grandmother for hundreds of pounds more than she owed.

Ian Thoroughgood, associate director at Grant Thornton in Ipswich, with Jonathan Agar, chief executive of Birketts.

Business advisers firm Grant Thorton is to unveil its 15th “Suffolk Limited” report next month on how the county’s leading businesses have performed over the past year.


Show Job Lists

Most read

Topic pages


Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24