Enterprise Inns believes it has taken a step closer towards qualifying as a real estate investment trust (REIT).
In a trading statement issued today, in which it said its pre-tax earnings were "broadly in line" with earlier indications, Enterprise admitted the smoking ban was having "a particularly adverse effect on pubs that are predominantly wet-led".
It added that due to volatility in the financial markets it was "not actively progressing" its £750m refinancing".
Instead it proposed to introduce what it called "a revised corporate structure based on the incorporation of a new operating company".
Enterprise believes this is the key to becoming a REIT, and said it was awaiting what it hoped would be a "swift response" from the tax authorities on whether the new structure can enable the group to move down this road.
"This [new] company will take an intermediate lease on arm's length terms over the freehold pub estate from Unique Pub Properties," the group said.
"We believe that the enhanced structure which we are proposing will be preferred by both bondholders and ratings agencies.
"At present the securitisation does not benefit from the control and operation of supply contracts, whereas under the revised structure supply contracts will be operated by the newly incorporated operating company.
"We believe the revised corporate structure contemplated as part of the proposed refinancing exercise would enhance the group's ability to convert," it concluded.
Enterprise did not detail the financial benefits which would arise for shareholders should it get the green light from the tax authorities.
However observers believe if the pubco succeeded in becoming a REIT it would trigger a wave of applications from other groups in the sector.
Enterprise's shares soared following the trading statement to 397.5p, up more than nine per cent.