Appointment of Administrators to Moorgate Taverns

 

TIDMPNB 
 
RNS Number : 8536Y 
Pubs 'n' Bars PLC 
10 September 2009 
 
 
 
Pubs 'n' Bars plc 
 
(AIM: PNB) 
 
("Pubs 'n' Bars" or "the Group") 
 
Appointment of Administrators to Moorgate Taverns Limited 
 
The Directors of Pubs 'n' Bars, the community public house owner and operator 
announce that following discussions with Clydesdale Bank PLC ("Clydesdale") who 
hold a charge over the property assets of Moorgate Taverns Limited ( 
"Moorgate"), the directors have applied to the courts for the appointment of 
administrators to Moorgate, a wholly owned subsidiary of PnB with immediate 
effect. 
 
Moorgate has an estate of ten freehold public houses within Hertfordshire, 
Oxfordshire and the South coast. Nine of these public houses were tenanted to 
individual operators and had tied contracts for beer supply and one pub was 
managed.  As a result of the general economic environment, Moorgate has been 
trading at a loss after finance costs and, due to the downturn in pub values, 
has breached certain of its borrowing covenants with Clydesdale. 
 
There are no guarantees from PnB to Clydesdale in respect of Moorgate's 
borrowings and the net effect on cashflow will be an interest saving of 
approximately GBP150,000 per annum by PnB. The book value of the pubs as at 31st 
December 2008 was GBP8.03m and the debt is GBP7.08m 
 
As a result of this, the Group now operates 94 pubs. 
 
=-END-- 
Enquiries: 
 
Mel Belligero, Chief Executive 
Pubs 'n' Bars plc                              `             Tel: [phone] 
Stewart Dickson/Paul Shackleton 
Daniel Stewart & Company plc                      Tel: [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCBBGDCRDBGGCG