Klockner Pentaplast (kp) has received approval from the US Bankruptcy Court for its reorganisation plan, allowing the packaging group to proceed with financial restructuring and exit Chapter 11. The plan, backed by first-lien lenders and noteholders, aims to eliminate €1.3bn of debt and provide greater financial flexibility.

An injection of €349m from existing creditors supported kp’s operations during the court-supervised proceedings. The company continued normal operations, including payments to vendors and partners. Once emerging from Chapter 11, all general unsecured claims will be addressed.

Legal counsel Kirkland & Ellis, investment banker PJT Partners, and restructuring adviser Alvarez & Marsal guided kp through the process. Strategic communications support was provided by Joele Frank, Wilkinson Brimmer Katcher. The ad hoc group of lenders and noteholders received advice from Gibson, Dunn & Crutcher and Houlihan Lokey UK.

kp CEO Roberto Villaquiran highlighted the company’s goal to strengthen financial foundations for growth and innovation. With court approval, kp is closer to this goal, thanks to continued support from financial partners. Founded in 1965, kp operates globally, employing over 5,000 people across 27 production sites in 16 countries.

Read more at Yahoo Finance: Klockner Pentaplast gains US court approval for debt restructure plan