Senior bondholders of Punch Taverns have called for the launch of an independent restructuring process after rejecting the latest proposal from the tenanted and leased pub company, The Times reports.

Punch’s proposals, announced on Monday, include improving covenant protection for creditors and accelerating repayment of senior noteholders ahead of other stakeholders. Punch is also proposing giving senior noteholders the option to sell their senior notes for cash if they accept the proposals, and creating an option for certain senior noteholders to waive their rights to note prepayment.

Punch executive chairman Stephen Billingham had warned the company’s stakeholders that there’s “not a lot of leeway” to change the revised proposals for its debt restructure announced today, and the consequences of not supporting it “are possibly quite severe”.

Punch had said it hopes to have the restructure of its £2.4bn debt securitisation agreed this month.