The Staffordshire-based firm announced in October it was in talks to identify ways to restructure the business with a view to potentially changing the two securitisations, or pooled debt financial instruments, which fund the business.
Today a statement from the company confirmed it had now identified two possible solutions - one for each securitisation - which it was discussing with stakeholders and hoping to implement 'without delay'.
The options now on the table include using cash to cancel some of the debt held by one of the securitisations and changing the terms of the second, as well as putting off certain payments, in order to prepare for a future deleveraging, or debt reduction, process.
The two options will lead to a £463m reduction in debt payments over the next five years and a £229m immediate reduction in debt in one of the two securitisations.
Stephen Billingham, the newly-appointed executive chairman of Punch Taverns, said he believed the options could be successfully implemented and would help deliver value for stakeholders in the company.
"Importantly, these proposals already have the support of a significant group of stakeholders," he said. "The board is mindful that support is also required from a large number of other stakeholders and the Board is keen to engage with all stakeholders and commence implementation of the restructuring proposals without delay," Billingham added.
While support has already been received from five financial institutions and two insurance firms, Punch Taverns has now kicked off discussions with a number of other stakeholders and holders of the debt in question to get agreement before proceeding with the plans.
The Burton-upon-Trent-based pubco is currently engaging in a significant pub disposal programme with the aim of becoming a high-value leased pub company with a portfolio of around 3,000 sites.