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Sancho Panza

Punch Tells Bondholders Restructuring Offers More Than Default

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Bloomberg 5/2/14

'Punch Taverns Plc (PUB) told bondholders they’ll get more value by backing a 2.3 billion pounds ($3.8 billion) restructuring than by pushing the company into default. Chairman Stephen Billingham said a failure to reach a deal by a Feb. 14 deadline will have a “material negative impact” on the business, according to a statement.

“The restructuring proposals deliver more value for all noteholders than default,” he said. “The next few days will be some of the most important in the company’s history,”

The owner of more than 4,000 pubs said it “continued to seek engagement” with a wide range of stakeholders since making its fourth and final restructuring proposal. Angelo Gordon Europe, Oaktree Capital Group LLC and Warwick Capital Partners LLP and a senior bondholder committee said Jan. 27 they’ll vote against the deal.

Burton-upon-Trent, England-based Punch has been negotiating with creditors since October 2012 to lower its debt burden as it seeks to combat a long-term decline in sales. Bondholder meetings to vote on the offer will take place next week as planned, the company said.

Punch has 16 classes of notes across two securitization financings, known as Punch A and Punch B. The bondholder committee includes Kames Capital Plc, Legal & General Plc, Prudential Plc’s M&G unit, Standard Life Plc and Aviva Plc and is advised by investment bank Rothschild, according to an investor conference call last year.'

A phrase that will likely echo through the next decade.

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You Bail one in, you Bail one out, you put Ink in the printer and you shake it all about, then you turn around and tell some lies, that`s what it`s all about!

Oh do the Hokey Brokey, yeah do the Hokey Brokey, that's what it`s all about!

Quality. laugh.giflaugh.gif

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No time for Schadenfreude. The board who 'masterminded' Punch Tavern's debt fuelled expansion in the boom years have already paid themselves 10s of millions. They and their families are spectacularly rich and will be for generations to come. Meanwhile the pubs they own rot, the beer they serve smells of eggs, the landlords trying to run them are getting less than NMW and the savers that unwittingly bought Punch bonds through their pension pots are losing their savings. A classic tale of 2000s cheap money financial engineering & land speculation by multimillionaire asset strippers.

Edited by gimble

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No time for Schadenfreude. The board who 'masterminded' Punch Tavern's debt fuelled expansion in the boom years have already paid themselves 10s of millions. They and their families are spectacularly rich and will be for generations to come. Meanwhile the pubs they own rot, the beer they serve smells of eggs, the landlords trying to run them are getting less than NMW and the savers that unwittingly bought Punch bonds through their pension pots are losing their savings. A classic tale of 2000s cheap money financial engineering & land speculation by multimillionaire asset strippers.

+100

The damage done by organisations like Punch taverns is vast.

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