Punch plans to slash £2.1bn debt as trading improves
The embattled pub group Punch Taverns has proposed a radical restructuring of its £2bn-plus debt mountain, and posted improved trading.
Punch plans to direct more of its cash resources towards its senior debt, which has a higher ranking among creditors, intended to reduce its repayment obligations by £600m over the next five years.
The new proposal comes after bondholders rejected a plan announced in February.
The group, which has about 4,500 pubs, is weighed down by £2.1bn of debt built up during an acquisition spree in the era of cheap finance before the credit crisis. It has a complex debt structure, with its loans split into two securitised vehicles, Punch A and Punch B.
The proposed structure would reduce its cash interest payments to £32m a year and slash its debt pile by £500m over the next five years. Punch will put it to shareholders and bondholders this month.
The company's underlying net income fell by 3.3 per cent over the 40 weeks to 25 May. Punch also said it had sold another 246 pubs for £84m.
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Woman accidentally shoots herself in the head while posing for a selfie
- 3 Art Garfunkel: Paul Simon is a 'monster' with a Napoleon complex
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...