Core Viewpoint - Private credit lenders are set to take control of 48Forty Solutions through a proposed restructuring, following a significant debt provision to support its acquisition by Summit Partners [1][2]. Group 1: Restructuring Details - A group of lenders, including Antares Capital, KKR & Co., BlackRock Inc., and Carlyle Group Inc., will exchange approximately $1 billion of liabilities for equity in 48Forty as part of the restructuring [2][3]. - Lenders will inject around $75 million of new debt into 48Forty during the restructuring process [3]. - The restructuring proposal includes potential cost-cutting measures, which may involve closing multiple pallet recycling plants, although no final decisions have been made [6]. Group 2: Financial Performance - 48Forty has stopped paying interest on its debt as of August, indicating financial distress [5]. - FS KKR Capital Corp. marked down the value of its loan to 48Forty to about 46 cents on the dollar in Q3, down from around 86 cents a year ago, reflecting a significant decline in the company's financial health [5]. Group 3: Governance Changes - The restructuring will involve appointing a new board for 48Forty, with Antares and KKR each having two appointments, while Carlyle and BlackRock will jointly agree on one, and the last seat will be reserved for the CEO [7].