Punch Taverns executive chairman Stephen Billingham and a committee representing senior Punch noteholders have clashed over the process of the company’s debt restructure.
In a statement issued following Punch’s proposals, the Association of British Insurers (ABI) Senior Noteholder Committee said it did not agree to the plans prior to the announcement. “The Committee and its advisers have had limited interaction with the company and its advisers since the previous proposal announced on 9 December 2013.
“The Committee’s advisers did not have sight of transaction documents prior to today’s announcement.”
Billingham told M&C Report: “It’s true they didn’t agree to it but nobody’s agreed it. We’ve taken a judgement call that it’s in the interests of what seems a reasonable deal where most people get pretty much what they want.
“We are in a position where we’ve run out of runway in terms of getting everyone to sign up. Given the different interests, no was willing to put the last concession on the table so we’ve had to say, right, this is what we think it looks like.”
He said Punch’s advisors talked to the ABI Committee about the proposal on Monday. “I personally went to see the senior advisor at the ABI on Friday last week.
“It’s like all these things, you might want more interaction.
“What they would have liked to have done would to have been in a position where we agreed with them. We’d have liked to have been in a position where we agreed with them, but we concluded that lots of detailed further interaction wasn’t going to get us very far.”
He added: “They are not the only party involved. There’s a whole load of other people who are interested in their positions in this as well.”
Asked how confident he was that the restructure would be approved, 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.”
A formal meeting with noteholders takes place on 14 February, although Billingham described this as a “bit of old fashioned formality”. “The reality is people vote by proxy probably in advance of that.”
The plan is to complete the process on 28 February, although Billingham said there could be a delay of a fortnight if the proposals don’t receive enough backing; 75% of stakeholders across the 16 different meetings need to agree to them.
He reiterated Punch’s view that the administrative receiver would probably be called in if the proposal is not agreed. “This is really the final push,” he stated.
