Packaging manufacturer Klöckner Pentaplast has received court confirmation of its financial restructuring plan. With the decision of a US bankruptcy court, the company is setting the course for the swift conclusion of the Chapter 11 proceedings and a strengthened financial basis.
Klöckner Pentaplast (KP) has announced that the US Bankruptcy Court for the Southern District of Texas the reorganisation plan of the company has been confirmed. This will allow KP to complete its financial restructuring as planned and exit the Chapter 11 proceedings in the USA in a timely manner. The plan was developed and financed with the support of a group of senior lenders and bondholders.
Significant debt reduction and new ownership structure
When the plan comes into effect, KP says it will reduce its interest-bearing liabilities by around 1.3 billion euros. At the same time, the company will enter the next phase with new owners, a strengthened balance sheet and greater financial flexibility. Existing senior creditors had already provided fresh capital totalling 349 million euros in advance to support ongoing business operations and the restructuring process.
Roberto Villaquiran, Chief Executive Officer of KP, explained that the company had entered the proceedings with the clear objective of providing the company with a solid financial basis for further growth and innovation. With the court's approval, KP has taken a decisive step towards this goal.
Business operations continue unchanged
According to the company, operations have continued without restriction throughout the proceedings. Customers would continue to be supplied and suppliers and business partners would be paid as normal. In addition, the confirmed plan provides for unsecured receivables to either be settled in full or reinstated.
Klöckner Pentaplast is a global supplier of rigid and flexible packaging and speciality films for the pharmaceutical, food and consumer goods industries, among others. With the completed restructuring, the company believes it is well positioned to respond even more flexibly to customer requirements in the future and further strengthen its market position.
Source: Klöckner Pentaplast
