Punch Taverns has said it is unable to guarantee that tenants’ security deposits will be secure in the result of a potential default on its debt, but has suggested it would be extremely unlikely that an administrative receiver would not protect the funds.
Punch told M&C Report that its depositors would be treated no differently from other creditors. But the group claimed it would not be in the interests of an administrative receiver, if appointed in the event of a default, to “act in a way that is prejudicial to tenants and their rights”.
The value of the deposits is thought to total about £22.6m.
Bondholders will vote on final proposal to restructure the company’s debts one week today [Friday, 14 February]. Three quarters of the vote must be in favour to be approved and further votes could take place on 28 February if voter turnout is too low.
It’s understood that if an agreement can’t be reached, an administrative receiver is likely to be appointed in late spring.
A Punch spokesperson added: “Bondholders can bring an end to uncertainty for our 4,000 tenants by voting in favour of the final restructuring proposal.”
