Klöckner Pentaplast (“kp” or the “Company”), a global leader in rigid and flexible packaging and specialty film solutions, has announced that it has entered into a Restructuring Support Agreement (“RSA”) with a significant majority of its financial partners on the terms of a comprehensive financial restructuring plan. The restructuring plan will substantially reduce the Company’s funded debt by approximately €1.3 billion, which will meaningfully strengthen the Company’s balance sheet and enhance kp’s financial flexibility moving forward. Under the terms of the RSA, following the consummation of the restructuring plan, ownership of the Company will transition to certain of kp’s financial partners.
To implement the restructuring plan contemplated under the RSA, kp and some of its subsidiaries and affiliates have voluntarily initiated a prepackaged Chapter 11 process in the United States Bankruptcy Court for the Southern District of Texas (the “Court”). Chapter 11 is a US legal process that companies use to raise capital, restructure their finances, and adjust ownership and business structures while they continue to operate as normal. kp intends to complete the financial restructuring process as quickly and efficiently as possible while continuing to operate in the ordinary course with no interruption to ongoing operations.
“The steps we are taking today will provide kp with new owners and a stronger financial foundation to continue driving innovation, delivering sustainable packaging and films, and responding to the needs of our customers with agility and excellence,” said Roberto Villaquiran, Chief Executive Officer of kp. “Our operations worldwide are continuing without interruption, and the support of our financial partners demonstrates their confidence in our business and the opportunities ahead.
“We thank our customers, suppliers, and business partners for their ongoing partnership and support, and our employees for their continued hard work and dedication. We are confident that we will emerge from this process better positioned than ever and look forward to further growing our leading portfolio, driving cutting-edge innovation, and bolstering the integral role we play in the customer value chain.”
