LONDON (ShareCast) - Troubled Punch Taverns (Other OTC: PCTVF - news) has called off a vote to get creditors to back a controversial debt restructuring package after some opposed it, leaving it at risk of default.
The British pub group, which has more than 4,000 leased pubs, said it had decided to withdraw resolutions to approve the package due to be voted upon at a meeting on Friday.
Punch, which has spent 14 months in talks with creditors to try to reach a deal to restructure its £2.3bn of debt, said it would re-open discussions with them.
"As previously announced, both securitisations will default without a consensual restructuring," Punch said in a statement.
"The board remains of the view that a consensual restructuring is in the best interests of all stakeholders and can be agreed ahead of the next covenant reporting date of April 15th 2014."
Punch has been trying to restructure its debt and to reform its complex debt structure followed an acquisition spree by previous management
The company revised initial proposals in December after senior lenders rejected them on the grounds that they favoured junior lenders.
It announced the final plan last month, but some creditors still opposed it and urged Punch to re-open talks.