Punch prepares to restructure debt

PUNCH Taverns is preparing for talks with bondholders as it moves to restructure its £2.4bn debt.

Posting its preliminary results for the year to August 18, the pubco said a detailed review of its capital structure concluded that “significant changes” were necessary to “protect the material financial and operational benefits that both [securitisations] enjoy as being part of the wider group”.
Punch chief executive Roger Whiteside said he is “confident” a “consensual restructuring” can be implemented.
The plans were unveiled as the pubco posted pre-tax profit of £64 million for the 52-week period, down from £76m the previous year; EBITDA was £238m, down from £258m in 2011.
“We have delivered profits for the year in line with our expectations and are on track with our disposal programme in extracting maximum value from our non-core assets,” said Whiteside. “While the options are complex and will take time to conclude, we are confident that a consensual restructuring can be successfully implemented in a manner that delivers value for stakeholders.”