U.K. pub operator Globe Pub Co., controlled by property entrepreneur Robert Tchenguiz, announced it would breach its securitization covenants.

The group said that trading at its 424 pubs in the last two quarters had slowed to a level that had brought its earnings before interest, tax, depreciation and amortization (EBITDA) to just 1.08 times its debt servicing costs. This falls bellow the default covenant level of 1.25.

If the pub operator does default on its loan as a result of the breach, the business could be placed in the hands of an administrator. 

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.