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Mitchells & Butlers secures financing waiver extension to next month

The publican, was given a waiver until 15 May by its lenders to avoid a potential breach of its secured financing terms from its pubs all being shut

Mitchells & Butlers - Mitchells & Butlers secures financing waiver extension to next month

Mitchells & Butlers PLC (LON:MAB) said a temporary waiver has been extended to 8 June.

The publican, where 99% of staff have been furloughed, was given a waiver until 15 May by its lenders to avoid a potential breach of its secured financing terms from its pubs all being shut.

READ: Pubs 'in precarious position' but JPMorgan upgrades Mitchells & Butlers

The owner of the All Bar One, Nicholson's and O’Neill's pub chains said last month it had enough cash to fund obligations “well into the second half of the year”.

Although the UK government has eased some lockdown restrictions, it is not clear when pubs and bars will be allowed to reopen and what safety measures they will have to follow.

According to an official 60-page document published last week, the hospitality sector is not likely to restart before July.

Shares advanced 5% to 151.8p on Monday morning.

--Adds shares--

Quick facts: Mitchells & Butlers

Price: 175.8 GBX

LSE:MAB
Market: LSE
Market Cap: £754.54 m
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