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Mon 11th Aug 2014 - Punch Taverns delays launch of debt-for-equity restructure
Punch Taverns delays launch of debt-for-equity restructure: Punch Taverns has delayed the launch of its £2.3bn debt restructuring to conclude discussions with stakeholders. The company said that it believes the restructuring can be launched within the next ten business days. This morning, the company stated: “On 18 July 2014, Punch announced that covenant waivers had been approved in respect of the Punch A and Punch B securitisations. These waivers are subject to various conditions, including that a restructuring implementing the proposals announced by the company on 26 June 2014 is launched by 11 August 2014. This condition is subject to a cure period of up to ten business days. Punch announces that the launch of the restructuring has been delayed, as some additional time is required to conclude discussions between certain stakeholders, and for the documentation to be finalised. The Board believes that a restructuring on terms, which are broadly similar to those announced on 26 June 2014, can be launched within the ten business day cure period. However, there can be no certainty that a restructuring will be launched within this period. The Board continues to believe that a consensual restructuring is required to avoid a near-term default in the Punch A and Punch B securitisations, which would have material adverse consequences for all stakeholders and, in particular, for shareholders.” The restructuring will see current equity holders reduce their stake in the company to 15% after new cash is injected by bondholders in a debt-for-equity swap. The refinancing will result is debt being reduced by £600m to £1.56bn, a reduction of 26%. The Mail on Sunday reported that an estimated £30m has been spent by Punch Taverns on trying to broker a deal between 16 different classes of bondholders and other stakeholders.

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