Punch Taverns (LSE: PUB) has had a dramatic fall from grace. Its debt-fuelled business model saw it become Britain’s biggest pub landlord during the credit boom. The bust that followed all but destroyed the company. And it is not out of danger.
Its finances are still a complete mess – it owes £2.3bn of debt, but has just £119m of tangible equity, according to its last annual report.
The company is trying to dig its way out of this gigantic hole. Its plans rest on convincing 75% of its bondholders and shareholders to accept a £600m [...]