Lloyds to rescue debt-laden Admiral
Tuesday 17 November 2009
Admiral Taverns has confirmed that Lloyds Banking Group is working on a financial restructuring of the struggling pubs group that is thought to involve a £600m debt-for-equity swap.
The deal means Lloyds will in effect take control of Admiral, which it inherited in last year's acquisition of Halifax/Bank of Scotland, although it will stop short of owning a 50 per cent majority stake. Lloyds declined to comment.
As part of the deal, Lloyds is also considering a pre-pack administration of Admiral that will enable the pubs owner to continue trading but with reduced liabilities. The pre-pack deal could be unveiled this week.
Admiral, which had debts of more than £1bn, is the latest pubs operator to hit hard times, following the collapse into administration of the Globe Pub Company, which was subsequently bought by the Heineken brewery last month. Admiral had expanded its estate rapidly by acquiring pubs from rivals such as Punch Taverns to make it the UK's third-biggest pub operator, with more than 3,000 leased and tenanted premises. Lloyds's restructuring of Admiral comes just days after the property developer Kenmore fell into administration; HBOS is reported to have pumped £700m in loans and equity investments into Kenmore.
A spokesman for Admiral said: "Admiral Taverns is pleased to confirm that it is working on a financial restructuring which will provide a stable platform for the business. The plan does not involve any job losses, and it is intended that all payments to suppliers and contractors will continue to be made in the normal course of business."
Lloyds is thought to have already provided for the pubs group's losses.
- 1 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 UK pirates will get four warning letters a year
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Hacking Trial: Rebekah Brooks, Raisa and a new twist in the saga of a horse fit for a Prime Minister
Israel-Gaza conflict: Palestinian death toll now exceeds 500 – but Israel fights on
Income tax league: Revealed - the UK towns where people pay the most and least tax
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£850 - £950 per day: Orgtel: Programme Director - Conduct Risk - Banking - £85...
£45000 - £50000 Per Annum + excellent benefits: Clearwater People Solutions Lt...
£250 - £300 per day + competitive: Orgtel: Finance Manager - Accountant - Bank...
£100000 - £120000 per annum + BONUS + BENEFITS: Harrington Starr: A leading fi...