Punch Taverns dismisses pre-pack administration option

The pub company has also restated its view that a restructure of the company can be launched in the first half of 2013.

Punch has released a statement following a meeting with “a number of significant stakeholders and their advisers” earlier this week, which was called in an attempt to end the row over its restructuring plans.

Punch said: “A wide range of views was expressed at the meeting, including the feasibility of a pre-pack administrative receivership of one or both of the securitisations to effect a restructuring. Punch has reiterated that a pre-pack cannot be executed, is not in the interests of stakeholders as a whole and the board cannot support such an option.

“Some stakeholders had previously expressed their lack of support for the current terms of the Restructuring Proposal and these views were reiterated in the meeting.

“However, whilst it was not anticipated that agreement would be reached at the meeting, views were expressed that provide a basis for further discussion with stakeholders around the restructuring proposal. These discussions are ongoing.

“The board continues to believe that a consensual restructuring is in the best interests of all stakeholders and that a restructuring can be launched in the first half of 2013.”

During the presentation, Punch revealed details of a recent external property valuation undertaken by GVA that put the current value of the core and non-core pub estates at £1,415m and £906m for the Punch A and Punch B securitisation estates respectively. It compares to net debt of £1,366m for Punch A and £835m for Punch B at 2 March.

Punch told stakeholders that its restructuring proposals would reduce the ratio of net debt to EBITDA in 2018 by about three times in Punch A, and about five times in Punch B, compared to the situation of consensual restructuring not happening and the business plan implemented by an administrative receiver following a covenant default.