The terms of the proposals are broadly similar to those announced on 26 June and will see a debt for equity swap resulting in a equity dilution for existing shareholders.
The company said this morning: “Punch will shortly issue a combined circular and prospectus to its shareholders, setting out details of the proposals and convening a general meeting for 17 September 2014 at which the requisite resolutions to approve the proposals will be put to shareholders. Punch is also issuing documents convening meetings of each class of noteholders in Punch A and Punch B for 17 September 2014 to approve the proposals.
“If all requisite shareholder, noteholder and other creditor approvals are obtained, the proposals are expected to become effective, and dealings in the New Ordinary Shares are expected to commence, on 8 October 2014.”
Necessary resolutions
The company said that if shareholders and noteholders do not approve the resolutions necessary to implement the restructuring and the firm placing, or if certain other required stakeholder consents have not been obtained, in each case by 14 October 2014, then, without a further waiver extension (which would be challenging to obtain in the time available), an event of default would be expected to occur in both securitisations by no later than 28 October 2014.
Stephen Billingham, executive chairman of Punch, said: “Today we launch the Punch restructuring, reflecting agreement across multiple stakeholder groups.
“The board believes that the restructuring will create a more robust balance sheet which will provide stability for the business, provide a firm base to allow Punch to build on recent improvements in trading and lead to further deleveraging.
“The benefits of approving the restructuring are clear and of benefit to all stakeholders. It is of critical importance that shareholders and noteholders vote in favour of the resolutions in order to implement the restructuring and avoid the adverse consequences for the group of the restructuring not proceeding.”