Strategic Value Partners (SVP) is in advanced negotiations with senior creditors of Kloeckner Pentaplast as the parties work toward a maturity extension on the German packaging manufacturer’s senior debt, according to a report by Bloomberg citing sources familiar with the matter.
The discussions come as Kloeckner Pentaplast contends with persistent inflationary pressures and softening demand across the packaging sector. As part of the prospective agreement, senior lenders have requested an equity infusion of approximately €300m ($343m) from SVP, the firm that controls the company.
The capital injection is being viewed as a key condition for lenders to consent to an amendment and extension of the company’s senior capital structure. The debt stack includes €1.2bn-equivalent in term loans maturing in February 2026 and €400m in secured notes set to mature the following month.
The company, which supplies plastic packaging primarily to the food and pharmaceutical sectors, has seen performance impacted by raw material cost volatility and weaker end-market demand. SVP previously supported the business with a €150m equity injection in 2023.
Earlier this year, SVP had reportedly explored a liability management transaction. However, growing concerns around near-term maturities and potential director liabilities under German law prompted a shift toward a consensual refinancing approach, according to sources.
The proposed senior debt extension follows a successful out-of-court deal struck in February with unsecured bondholders. That transaction saw junior notes issued by Kleopatra Holdings 2 exchanged for new second-lien notes due 2029, issued via Kleopatra Finco, with near-unanimous support from creditors.
