Punch creditors say debt deal is scaremongering
BONDHOLDERS of British pub operator Punch Taverns have claimed the company is “scaremongering” ahead of Friday’s vote on the restructuring of its £2.3bn debt mountain.
Punch Taverns last week reminded bondholders of its imminent restructuring vote, warning that rejection would “have a material negative impact on the business”.
The pub group, which now has over 4,000 pubs in the UK, built up debt during an acquisition spree in the last decade that saw the firm grow to almost 10,000 properties at its height.
Senior lenders over the weekend warned that Punch’s proposal, which the operator says is its final offer, is biased towards shareholders. They point to large cash reserves still held by Punch, which they claim will not lead to a crisis if the proposal is rejected.
The Association of British Insurers representing lenders last month said: “The creditors believe Punch should reopen negotiations.”
A spokesperson for Punch Taverns said yesterday, “The company has no intention of scaremongering. The company is just talking about the reality of the fact that these securitisations will in the near-term default without the restructuring. Punch has got a proposal on the table that is capable of delivery and will deliver a better position for all stake-holders than a default.”