PUNCH Taverns, the pub landlord that leases 170 outlets in Scotland, has gone back to creditors with a revised set of restructuring proposals as the company seeks to tackle its debt mountain.
The company, whose debt stands at around £2.1 billion, will meet stakeholders this week to discuss the new plans, which a spokesman said would put it on a "stable footing for the next 16 years". Punch's initial debt restructuring proposals in February were rejected by investors.
The company, which has split its debt into two securitisations, Punch A and Punch B, is confident of implementing its revised debt reduction plan this month.
Executive chairman Stephen Billingham said the new proposals "achieve an equitable solution by directing more of the group's finite cash resources to the senior classes of notes, while still providing good value for the junior classes of notes".
The restructuring update came as Punch said it was on track to meet full-year profit expectations in its interim management statement for the 12 weeks to May 25.
Like for like net income was down 0.7% in the third quarter, and 3.3% for the 40 weeks to May 25, with the company stating its trading performance had been driven by investment in its core pub estate, the development of its food offer in outlet and by giving more support to its tenants.
The period saw the company raise £284 million by selling 246 pubs and other assets "slightly ahead of book value".
Shares in Punch Taverns closed up 0.5p at 13.25p.
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