Admiral works on debt deal with its banker

ADMIRAL Taverns yesterday confirmed it was working on a financial restructuring which is expected to leave Lloyds Banking Group owning half the pub chain.<br /><br />It was revealed that Lloyds is set to agree a &pound;600m debt-for-equity swap at the tenanted pub company group, in the latest fallout from the banking group&rsquo;s ill-fated merger last year with rival HBOS.<br /><br />The deal, which is likely to come in the form of a pre-pack administration, comes after Admiral fell behind on its repayments of more than &pound;1bn debts. <br /><br />The pub chain, founded in 2004, snapped up more than 3,000 pubs from larger rivals, but its revenues have suffered as consumers cut spending in the downturn.<br /><br />Admiral Taverns yesterday said: &ldquo;The plan does not involve any job losses, and it is intended that all payments to suppliers and contractors will continue to be made in the normal course of business.&rdquo;