Punch Taverns calls for more time
TROUBLED pubs owner Punch Taverns has asked lenders for more time to thrash out a deal on its £2.3billion debt refinancing.
The company, with more than 4,000 pubs, wants bondholders to waive the conditions tied to loans to avoid the risk of a default.
Talks have been going on since October 2012 and a crunch meeting in February was postponed for further negotiations.
Talks have been going on since October 2012 and a crunch meeting in February was postponed for further negotiations
The firm said “progress has been made” but further time was required to finalise the proposals and allow stakeholders and their advisers to review the details.
The Association of British Insurers committee representing Punch lenders said it would agree to the waivers.
Punch said the so-called covenant waivers were “necessary to avoid the risk of a near-term default”.
Writing to creditors it claimed existing debt arrangements were “unsustainable” and warned a default would cause “significant short-term disruption to the business and a negative impact on pub values”.
A meeting to vote on the waiver request will be held on April 29 and a condition of agreement will be that restructuring begins by June 30.