The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Punch drunk: Battered ABS bondholders face knockout blow

From Punch Taverns to a string of commercial real estate-backed deals, borrowers and bondholders in distressed European securitizations are squaring up for a bitter fight. The chaotic process by which these structures threaten to unravel will be a lasting legacy of the ABS binge. Louise Bowman reports.

FOR SHEER CHUTZPAH it takes some beating. When Giles ­Thorley, the man behind UK pub group Punch Taverns for the past decade, joined private equity outfit TDR Capital at the beginning of this year he announced that the industry "will need to get smarter". If by that he meant that firms should sweat their assets rather than just add leverage, a quick look at Punch Taverns, which he quit in March 2010, might suggest that it is advice that the pub group could have followed under his watch too. Having worked with Guy Hands at Nomura’s principal finance group in the 1990s, Thorley led the flotation of Punch in 2002 and oversaw breakneck expansion of the estate, which at one stage numbered 8,500 pubs. He also oversaw a slump in the share price from £13.75 in May 2007 to 32p in January 2010 (it was trading at 68p in late February 2011) and the accumulation of staggering amounts of debt: £3.1 billion ($5 billion) on an equity value of £440 million – practically all of which is securitized.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree