LONDON (Reuters) - Punch Taverns'
The company announced it was embarking on a debt reduction plan earlier this month, after being hit hard by Britain's economic downturn, and is trying to reduce 2.3 billion pounds of debt.
Punch's debt structure is complex, with debt split into two securitised vehicles, Punch A and Punch B, and bondholders rejected the proposal put forward early last year stating it was too generous to shareholders and junior creditors.
The pub firm then put forward on January 15 a revised proposal of a debt extension and a reduction in the amount that will be repaid to creditors.
But sources close to the bondholders said the creditors had found issues with the commercial terms, the structure of the new notes and the documentation.
Creditors ABI Senior Noteholder Committee, Angelo Gordon, Oaktree Capital Management and Warwick Capital Partners said on Monday they were unable to support the revised proposals, and would vote against them at any meetings of the issuer companies.
"The creditors believe Punch should reopen negotiations ... (and) remain willing to work in good faith to agree a consensual restructuring for both Punch A and Punch B," they said in a statement.
"(We) continue to believe this to be in the best interests of all stakeholders," they added.
The creditors said they had various blocking stakes in a number of classes of Punch A and B notes.
Punch said it had acknowledged the statement from its creditors and would be available for discussions on the restructuring proposals.
Bondholders will vote on the restructuring on February 14.
Shares in Punch were down 1.0 percent at 15.00 pence at 1141.
(Reporting by Li-mei Hoang, editing by Elizabeth Piper and Louise Heavens)