Punch bondholders: review disappointing
Bondholders in Punch Taverns have accused the pubco of ignoring the issues surrounding its tenanted estate in the strategic review of its business.
In response to the results of Punch's strategic review, which were announced yesterday, a spokesperson for the ABI Special Committee of bondholders said: The PLC's strategic review is disappointing. We have waited six months for the review to be conducted, during which time operational performance in the leased estate, where bondholders have £2.5bn at risk, has continued to decline.
"The review does nothing to address this key issue of turning around the trading, and rather than engage in discussion with bondholders about that now, it prioritises a demerger of Spirit costing £30m.
"This says a lot about where Mr Dyson and the PLC see their priorities. This strategic review does nothing to address the issues in the tenanted estate and is a "walk-away" by another name from them. We remain concerned to see the real issues in the operating businesses addressed fast."
Regarding speculation about the company electing to 'walk away' from the Punch A and Punch B securitisations, Ian Dyson, chief executive, said the company did not believe that this "would be in the best interests of our stakeholders".
He said that the 'walk away' option would remove the opportunity to create equity value in the leased business and would negatively impact the management, operation and valuation of the entire group.
Punch said following the de-merger of Spirit, it was likely to engage in some dialogue with bondholders with a view to optimising the capital structure. It could not give timing, scope or content of such dialogue.
In the meantime, it said it would continue to provide the required financial support to the securitisations to enable the leased business to build on the progress it has made.
