News - Midlands
Punch ponders loan default on 5,000 pubs
Punch Taverns is preparing to default on the loans on more than 5,000 pubs as it looks to restructure, according to reports in the Sunday Times.
The plan would result in the pubs being repossessed, but allow Punch, which was said by the Sunday Times to be "struggling with £3.1bn of debt secured against its pub estate", to take them back on better terms.
Earlier this year, Punch said it intended to sell off 1,300 of its UK pubs after a disastrous performance in its year-end results. The Burton-upon-Trent based company said it wanted to “stabilise” the business.
The company's resulted revealed a loss after exceptional items of £160m.
The company holds its annual general meeting next week.