A source close to a group of Punch Taverns bondholders has given reasons for its decision not to support the pub company’s plans for its debt restructure.
The source close to the Association of British Insurers (ABI) Senior Noteholder Committee told M&C Report: “There are issues with the commercial terms, the structure of the new notes and the documentation.”
Meanwhile, Punch has said in a statement: “The company continues to be available to discuss with creditors their views of the restructuring proposals.”
Punch’s shares fell 1.75p to 14.25p.
Yesterday the Committee said: “The creditors and their advisors have carefully considered the revised proposals issued by Punch and the related legal documents made available. They are unable to support these proposals (in relation to either Punch A or Punch B) and accordingly will vote against the proposals at any meetings of the Issuer Companies.”
It called for Punch to “re-open negotiations”.
“The creditors remain willing to work in good faith to agree a consensual restructuring for both Punch A and Punch B and continue to believe this to be in the best interests of all stakeholders.”
The Committee had earlier stated that it did not believe with the proposals prior to Punch’s announcement earlier this month.
Asked by M&C Report earlier this month how confident he was that the restructure would be approved, Punch executive chairman Stephen Billingham said: “We think it should happen. The economics work for everybody therefore people should vote it through. The consequences of it not happening are also pretty bad.”
He added: “We think it has a balance between all the stakeholders. We think it plots a middle ground between them all and when they look at it they look at it they will see it as a good deal. That’s why I encourage people to look at it carefully and thoroughly. We’ll help them do that. We’re going to give each and every class of debt details about how it effects their individual class.”
