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Class 2 Disposal

Punch is pleased to announce that it has reached agreement to sell 5 pubs to Manica Properties Limited for a total consideration of £9.7 million. The pubs to be sold are freehold outlets located in central London. The agreement is expected to complete on 30 June 2014.

The consideration will be satisfied in cash. Net disposal proceeds will be used to reduce debt and reinvest in the estate.

For the financial year ended 17 August 2013, the pubs being disposed of generated earnings before interest and tax of £0.5 million. As at 1 March 2014, the pubs had a book value of £4.4 million.

The video at the end is interesting - Campaign Win: Reform of the Beer Tie

Restructuring Update

Update on the launch of the restructuring of the Punch A and Punch B securitisations

On 18 July 2014, Punch announced that covenant waivers had been approved in respect of the Punch A and Punch B securitisations. These waivers are subject to various conditions, including that a restructuring implementing the proposals announced by the Company on 26 June 2014 is launched by 11 August 2014. This condition is subject to a cure period of up to 10 business days.

Punch announces that the launch of the restructuring has been delayed, as some additional time is required to conclude discussions between certain stakeholders, and for the documentation to be finalised. The Board believes that a restructuring on terms which are broadly similar to those announced on 26 June 2014 can be launched within the 10 business day cure period.

However, there can be no certainty that a restructuring will be launched within this period. The Board continues to believe that a consensual restructuring is required to avoid a near-term default in the Punch A and Punch B securitisations, which would have material adverse consequences for all stakeholders and, in particular, for shareholders.

Punch Taverns Restructuring Announcement

Possible Offer for Punch Taverns plc ("Punch")