Admiral works on debt deal with its banker
ADMIRAL Taverns yesterday confirmed it was working on a financial restructuring which is expected to leave Lloyds Banking Group owning half the pub chain.
It was revealed that Lloyds is set to agree a £600m debt-for-equity swap at the tenanted pub company group, in the latest fallout from the banking group’s ill-fated merger last year with rival HBOS.
The deal, which is likely to come in the form of a pre-pack administration, comes after Admiral fell behind on its repayments of more than £1bn debts.
The pub chain, founded in 2004, snapped up more than 3,000 pubs from larger rivals, but its revenues have suffered as consumers cut spending in the downturn.
Admiral Taverns yesterday said: “The plan does not involve any job losses, and it is intended that all payments to suppliers and contractors will continue to be made in the normal course of business.”