Aug 18 Punch Taverns Plc said owners of
about 65 percent of its notes now supported its plan to
restructure about 2.3 billion pounds ($3.9 billion) of debt, up
from about 59 percent in June.
Punch, which began the process of restructuring its debt in
2012, said shareholders controlling about 54 percent of its
equity supported the complex restructuring, little changed from
The plan needs support of at least 75 percent of votes cast
at noteholder and shareholder meetings on Sept. 17.
The company, which has received covenant waivers pending the
restructuring, said on Monday that a failure to secure approval
for the plan could lead to a default.
Punch still has to secure the backing of lenders including
the Royal Bank of Scotland Plc, Lloyds Bank Plc, Citibank and
MBIA UK Insurance Ltd.
Under the restructuring plan released in June, Punch's net
debt would drop by about 600 million pounds and result in
shareholders retaining just 15 percent of the company.
Up to Friday's close, Punch's stock had fallen more than 23
percent since the beginning of the year.
The company's shares, which were untraded by 1108 GMT on
Monday, closed at 9.2 pence on Friday.
Punch, like many pub owners, was hit hard by Britain's
double-dip recession. The company's revenue fell almost 7
percent in the year ended Aug. 17, 2013.
(Reporting by Esha Vaish and Roshni Menon in Bangalore; Editing
by Ted Kerr)