Punch Taverns eyes waivers from bondholders amid restructuring talks

By Caroline Salls

Pittsburgh, April 7 - Punch Taverns Finance B Ltd. is seeking temporary waivers to avoid a default on its Punch B securitization while restructuring talks continue, according to a news release.

Bondholders will vote on the waiver requests at a meeting scheduled for April 29.

The requests include temporary waivers of a debt service coverage ratio covenant and other provisions of the securitization documents.

If granted, the waivers will expire on Aug. 29 at the latest. The proposed waivers require the company to launch a restructuring by June 30. Definitive restructuring term sheets must be agreed to by key parties by May 30 and definitive documentation by June 24.

The company said debt service will continue throughout the waiver period, as well as prepayments and repayments required under facility agreements. No other prepayments or unscheduled repayments will be made.

In addition, no party will receive any waiver or consent fees in connection with the waiver request.

During the waiver period, Punch Taverns cannot make any permitted restricted payments, make other payments except in the ordinary course of trading, use any cash to acquire any notes and make any acquisitions other than those allowed in the ordinary course of trading.

The company can only make disposals permitted by the facility agreements during the waiver period.

As previously reported, discussions have been ongoing with Punch Taverns stakeholders with a view to reaching agreement on the terms of a consensual restructuring for the Punch A and B securitizations.

While progress has been made, the company said more time is needed to finalize the proposals and to permit stakeholders and their advisers to review and comment on the documentation necessary to implement them.

After the announcement of revised restructuring proposals on Dec. 9, noteholder meetings were scheduled for Feb. 14 to approve the terms of a restructuring for the Punch A securitization.

However, Punch said it concluded that, in light of feedback received following the launch of restructuring proposals, a further period of engagement would be required in order to reach agreement with stakeholders on the terms of a consensual restructuring.

As a result, the Feb. 14 meeting was cancelled.

Punch Taverns is a pub company based in Burton on Trent, England.

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