(PNB.L) Pubs 'N' Bars PLC Buy/Sell

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 £150,000 per annum by PnB. The book value of the pubs as at 31st December 2008 was £8.03m and the debt is £7.08m

As a result of this, the Group now operates 94 pubs.

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Enquiries:

Mel Belligero, Chief Executive

Pubs 'n' Bars plc ` Tel: 020 8228 4800

Stewart Dickson/Paul Shackleton

Daniel Stewart & Company plc Tel: 020 7776 6550

This information is provided by RNS The company news service from the London Stock Exchange

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