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Pub operator Punch Taverns delays debt restructuring

Published 11/08/2014, 08:23
Updated 11/08/2014, 08:30
Pub operator Punch Taverns delays debt restructuring
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(Reuters) - Punch Taverns Plc (L:PUB) said a restructuring of its debt, which was supposed to conclude by Monday, had been delayed as the British pub operator sought more time to conclude certain discussions with stakeholders.

Punch Taverns, which has about 4,300 pubs, was hit hard by Britain's double-dip recession. In January, it proposed a restructuring plan to avoid a default but the proposal was rejected by shareholders.

In June, the company unveiled new proposals to reduce its total net debt by about 600 million pounds, resulting in significant equity dilution for existing shareholders.

The pub operator said that a restructuring on terms broadly similar to those announced in June could be launched within the 10 business days grace period as part of the terms.

Punch Tavern shares were down marginally in thin Monday morning trade on the London Stock Exchange.

(Reporting by Aastha Agnihotri in Bangalore; Editing by Gopakumar Warrier)

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