Klöckner Pentaplast has successfully completed its Chapter 11 restructuring, eliminating approximately €1.3 billion ($1.5 billion) in funded debt from its balance sheet. The packaging and film manufacturer has emerged from US bankruptcy court oversight following a comprehensive financial reorganization that began in late 2024.
The company’s exit from the Chapter 11 process follows an injection of €349 million in new capital aimed at stabilizing its ongoing operations. According to the company, the restructuring plan received approval from the US Bankruptcy Court for the Southern District of Texas in December.
Ownership Transfer and New Leadership Structure
Ownership of Klöckner Pentaplast has now transferred to a consortium of financial partners led by funds affiliated with Redwood Capital Management. This change in ownership structure represents a fundamental shift in the company’s financial backing and strategic direction.
Additionally, significant changes have been made to the company’s board of directors. CEO Roberto Villaquiran and Michael Kaufman, a partner at Redwood Capital Management, have both joined the board as part of the restructuring process.
Board Expansion Expected in Coming Weeks
The company anticipates the appointment of Andrew Berlin as board chairman in the near future. Berlin brings extensive industry experience, having served as chairman and CEO of Berlin Packaging for more than 30 years before the company’s sale to Oak Hill Capital Partners.
However, the board composition is not yet finalized. The process to complete Klöckner Pentaplast’s board with additional industry figures is expected to be concluded in the coming weeks, according to the company.
Timeline of the Chapter 11 Restructuring Process
The restructuring process commenced after Klöckner Pentaplast entered a restructuring support agreement with most of its financial stakeholders in November 2024. This agreement laid the groundwork for the comprehensive debt reduction and recapitalization effort.
Meanwhile, the court approval in December paved the way for the company to implement its reorganization plan and eliminate the substantial debt burden. The injection of new capital was a critical component of ensuring operational continuity throughout the process.
Management Commentary on Financial Strengthening
In contrast to the financial challenges that necessitated the bankruptcy filing, CEO Villaquiran expressed optimism about the company’s future prospects. He stated that the completion of the Chapter 11 restructuring represents the next exciting phase in the company’s journey as a financially stronger organization.
Villaquiran emphasized his confidence in the company’s talented teams and their ability to build on the leading product portfolio and global presence. He also expressed gratitude for the support of the new owners and their demonstrated confidence in the business.
Implications for Global Packaging Operations
The successful completion of the debt restructuring positions Klöckner Pentaplast to continue delivering innovative and sustainable packaging and film solutions to customers globally. The company’s global manufacturing footprint and market position remain intact following the financial reorganization.
Furthermore, the substantial reduction in debt obligations should improve the company’s financial flexibility and ability to invest in operations and innovation. The €349 million capital injection provides additional resources to support ongoing business activities.
The finalization of the board composition in the coming weeks will provide further clarity on the company’s strategic direction under new ownership. The selection of additional industry figures is expected to bring expertise that will guide Klöckner Pentaplast’s operations in the post-restructuring period.
