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.

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