Payne: Business as usual

As news emerged of fresh problems with the tangled finances of a Robert Tchenguiz-linked company, his managed pubs chairman Ian Payne has insisted it's business as usual.

Kaupthing, the crashed bank now being run by Icelandic Government-appointed management, is maintaining its debt and equity investment in Robert Tchenguiz's two managed pub companies, despite an unpaid £643m overdraft outstanding from a Tchenguiz-linked company, Ocsatello.

It has emerged that Kaupthing is now running British Virgin Islands-based Oscatello, which has the £643m outstanding despite the forced sale of Tchenguiz's stake in companies such as Mitchells & Butlers and Sainsbury's last October.

It seems, though, that the quasi-Governmental committee running Kaupthing is happy to let its investment in Slug & Lettuce operator Bay Restaurants and Yates's operator Town & City Pubs ride for the time being.

Ian Payne, chairman of Bay Restaurants and Town & City Pubs, said: "The status quo has not changed. Kaupthing has debt and equity in the businesses and has made it absolutely clear that it's in it for the long run."

Payne said Kaupthing's investment is now overseen by a five-man committee, three of whom are Icelandic civil servants.

"They're not looking to do anything quickly. It's a strange situation — it's not like in this country where Ernst & Young might get involved. Members of the committee sit on our board."

Payne revealed that Bay Restaurants and Town & City Pubs were both trading well, although the snow of last week had affected business. "Town & City, in particular, had a blinding January."

The Guardian reported that creditor-appointed management at Kaupthing are seeking to find out why the credit-approval committee at the bank approved the loan to Tchenguiz of which £634m is outsanding, partly with indirect investments as collateral.