Punch bondholders seek advice

BONDHOLDERS of pub chain Punch Taverns have met with financial advisers in order to prepare for possible restructuring talks with the heavily-indebted firm.

Bondholders met on Friday to discuss with several advisers – including Houlihan Lokey, Rothschild and Ernst & Young – how to handle talks should the company look to renegotiate its debts.

Amongst the options for the group, which is looking to address its more than £3bn debt pile, is a default on its debts, which could help it to shed some of its weaker-performing pubs.

Pubs owned by the company are almost entirely backed by debt, meaning a deafult would leave bondholders in control.