Oct 2 (Reuters) - Punch Taverns Plc said it had received approval from Lloyds Bank Plc for its plan to restructure its 2.3 billion pound ($3.7 billion) debt.
The pub operator said in August that owners of 65 percent of its notes supported the plan, but that it had yet to secure the backing of lenders including Lloyds.
The company said on Thursday it was now awaiting for approval from the Royal Bank of Scotland. Upon receipt of consent from RBS, completion of the restructuring is expected to become effective on Oct. 8, Punch said.
Under the restructuring plan released in June, Punch’s net debt would drop by about 600 million pounds and result in shareholders retaining just 15 percent of the company.
Punch, like many pub owners, was hit hard by Britain’s double-dip recession.
1 US dollar = 0.6196 British pound Reporting by Aastha Agnihotri in Bangalore; Editing by Ted Kerr