Klöckner Pentaplast has concluded a restructuring agreement (RSA) with a majority of its financial partners. The packaging manufacturer is initiating Chapter 11 proceedings in the USA to implement the agreement; ongoing operations worldwide are to continue without interruption.
Klöckner Pentaplast intends to reduce its financial liabilities by around €1.3 billion as part of the plan in order to strengthen the balance sheet and increase flexibility. Upon completion of the measures, the ownership structure will be transferred to certain financial partners. The proceedings are pending in the U.S. Bankruptcy Court for the Southern District of Texas; the company emphasises that it will continue to operate „in the ordinary course of business“.
Financing and supply chains
Klöckner Pentaplast has received commitments for a new debtor-in-possession financing volume of €215 million to support it during the court proceedings. According to the company, Klöckner Pentaplast expects to pay suppliers and service providers in full for services rendered before and after the application and has submitted corresponding applications („first-day motions“).
Scope of the procedure
Not all national companies are part of the US procedure. Among others, entities in Argentina, Brazil, Canada, China, Mexico, Switzerland, Thailand and the UAE are excluded; in addition, certain companies in Germany, Luxembourg, the Netherlands, Spain, the United Kingdom and the USA are not included.
Classification
Klöckner Pentaplast, founded in Montabaur in 1965, is a global supplier of rigid and flexible packaging and speciality films for pharmaceuticals, medical technology, food and beverages, among others. The company operates 27 plants in 16 countries with over 5,000 employees.
Source: Klöckner Pentaplast
