26th Jun 2014 11:24
LONDON (Alliance News) - The Hotel Corporation PLC, the AIM listed investment company which owns 49.9% of Puma Hotels PLC, Thursday said that the owner of Puma's debt had agreed to postpone repayment of the debt until the end of September, in a further sign that the business is suffering financial difficulty.
Earlier this week, The Hotel Corporation had warned that there was uncertainty over whether Puma Hotels would be able to keep trading, although it was confident that it would be able to stay afloat even if Puma ceases to trade.
In a statement Thursday, The Hotel Corporation said LSREF III Wight Ltd, the company which bought Puma's senior outstanding debt, has agreed to postpone the repayment of the debt until the end of September, subject to certain conditions.
Puma extended its GBP323.0 million senior debt facility with Irish Bank Resolution Corp in Special Liquidation last July, with new terms agreed until May 14, 2014. However, Lone Star Funds then bought Puma's banking facilities earlier this month.
The Hotel Corporation also said that Puma intends to change its name to 'UK Group of Hotels PLC', and will allow shareholder to vote on that on July 10.
The Hotel Corporation's shares were Thursday quoted at 1.50 pence, down 14.3%.
By Samuel Agini; [email protected]; @samuelagini
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