Klöckner Pentaplast seals restructuring support agreement

Core Viewpoint - Klöckner Pentaplast is undergoing a significant financial restructuring to reduce its debt by approximately €1.3 billion ($1.49 billion) and enhance its financial stability and flexibility [1][2]. Group 1: Restructuring Plan - The company has entered a Restructuring Support Agreement (RSA) with a majority of its financial shareholders to implement a broad financial restructuring plan [1]. - Ownership of Klöckner Pentaplast will transition to certain financial partners following the completion of the restructuring plan [2]. - The company has initiated a prepackaged Chapter 11 process in the US Bankruptcy Court for the Southern District of Texas to facilitate the restructuring [2]. Group 2: Financial Support and Operations - Klöckner Pentaplast has secured €215 million in new debtor-in-possession (DIP) financing from select financial partners, pending court approval, to support operations during the restructuring [3]. - The company intends to pay vendors, suppliers, and business partners in full for goods and services delivered before and after the filing [3]. - The company has filed several "first-day" motions to ensure operations continue without disruption and to meet obligations to employees and stakeholders [4]. Group 3: Exclusions and Advisors - Certain entities in Argentina, Belarus, Brazil, Canada, China, Czech Republic, Egypt, India, Italy, Jersey, Mexico, Poland, Portugal, Russia, Switzerland, Thailand, Turkey, and the United Arab Emirates are excluded from the US Chapter 11 process [4]. - Entities in Germany, Luxembourg, the Netherlands, Spain, the UK, and the US are also excluded from this process [5]. - Kirkland & Ellis serves as legal counsel, PJT Partners as the investment banker, and Alvarez & Marsal as the restructuring advisor to Klöckner Pentaplast [5]. Group 4: Company Vision and Market Position - The CEO of Klöckner Pentaplast stated that the restructuring will provide the company with new owners and a stronger financial foundation to drive innovation and respond to customer needs [6]. - The company supplies rigid and flexible packaging and specialty film solutions to various sectors, including pharmaceuticals, medical devices, food, beverages, and cards [6].