United Kingdom: Scottish & Newcastle discusses a subsidiary debt with creditors

Brewing giant Scottish & Newcastle is in discussions with creditors over the debt of its subsidiary Globe Pub Company, as the licensed trade continues to take a battering in the economic downturn, the Grocer published on December, 22.

According to sources, talks have begun between over a possible debt restructuring between Globe, which is jointly owned by S&N with retail entrepreneur Robert Tchenguiz, and its lending banks, headed by Barclays.

The pub group satisfied its performance criteria last month to continue the existing arrangements but a further slump in sales this month has, according to The Times, brought Globe’s creditors to the table to renegotiate their terms.

UK pub operators are living through a really disastrous time this year.

Last month the UK’s largest pub group, Mitchells & Butlers, cancelled its dividend for shareholders and said it was cutting capital expenditure by almost half after racking up pre-tax losses of £286m for the past two years. The group controls pub chains including O'Neills, Harvester and All Bar One.

26 December, 2008