Punch Taverns PLC Response to Statement From ABI (9162G)
June 12 2013 - 11:26AM
UK Regulatory
TIDMPUB
RNS Number : 9162G
Punch Taverns PLC
12 June 2013
PUNCH TAVERNS PLC
('Punch')
Response to statement from the ABI Special Committee of
Noteholders (the 'ABI Special Committee') to the Revised
Restructuring Proposals of 12(th) June 2013
Punch notes the statement made today by the ABI Special
Committee in response to the Revised Restructuring Proposals made
by Punch on Monday 10(th) June 2013.
There are a number of statements made by the ABI Special
Committee in their statement today that are inaccurate.
- The statement refers to the ABI Special Committee's financial
and legal advisers having 'not been provided with access to
material parts of the standard due diligence information requested
by them and there has been no meaningful engagement on the issues
with the Borrowers or the Shareholder despite our best
efforts'.
- The statement further notes that the 'process of making public
proposals to Noteholders without prior negotiation and discussion
and without the ability for Noteholders to conduct appropriate due
diligence is unsatisfactory and is not conducive to agreeing
terms'.
In response, Punch wishes to make clear the following
points.
Punch agrees that a process of public proposals being made to
Noteholders, without prior negotiation and discussion, is not
satisfactory. Punch has gone to great lengths to engage with the
ABI Special Committee, including offering to meet with the ABI
Special Committee on no less than five separate occasions during
the last month. In fact, even on 6(th) June 2013, the ABI Special
Committee declined in writing a request for a meeting by Punch and
stated that 'the Committee believes it will be very useful to have
discussions with you once the revised proposal is made public'.
Punch further notes that the ABI Special Committee and its
advisers failed to attend the stakeholder meeting held today.
Despite constructive discussions with a number of the ABI
Special Committee members it is disappointing that the advisers to
the ABI Special Committee have been unwilling to actively engage
with Punch. One matter where Punch has been unable to reach
agreement with the advisers to the ABI Special Committee relates to
their professional fees, a proportion of which were incurred by
them before any contact was made with Punch. The Board considers
these fee demands to be disproportionate to all other adviser fees,
and at a level that Punch and, more importantly, the transaction,
would be unable to support.
Extensive due diligence materials have been made available to
all parties, including the advisers to the ABI Special Committee.
The majority of this information was made available to the ABI
Special Committee's advisers in 2012. Due diligence materials
provided to the ABI Special Committee's advisers include:
- Securitisation and legal documentation
- Transaction models
- Default models
- Independent Business Review (IBR) prepared by PwC
- Cost structure review / dis-synergies report prepared by PwC
- Pub industry market outlook report prepared by OC&C
- Valuation reports for both the core and non-core estates prepared by GVA
- Meetings with the management of Punch and its legal and
financial advisers offered to all material stakeholders to assist
with due diligence
Punch rejects the assertion that appropriate due diligence
material has not been made available. Further, the ABI Special
Committee advisers' statement that the due diligence information
provided to date has been insufficient is at odds with the fact
that a number of significant financial institutions, who are as
significant to the transaction as the ABI Special Committee, have
already undertaken their financial and legal due diligence
processes based upon the information that has been made available
to the ABI Special Committee's advisers.
Commenting on today's statement by the ABI Special Committee,
Punch Executive Chairman, Stephen Billingham, said:
'We have had constructive discussions with a broad group of
stakeholders, including a number of members of the ABI Special
Committee. We are somewhat surprised by the statement today, which
is inconsistent with that dialogue.
There are a range of views within the ABI Special Committee and
Punch and its advisers wish to continue to engage with them to
reach a solution capable of being implemented.
The latest Punch proposal is a reasonable one which we believe,
when fully considered by all parties, including the ABI Special
Committee, is capable of delivering a good solution for all
stakeholders.'
Enquiries: Tel: 01283
501 948
Punch Taverns plc
Stephen Billingham, Executive
Chairman
Steve Dando, Finance Director
Media: Brunswick Tel: 020 7404
Jonathan Glass, Mike Smith 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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