Klockner Pentaplast (kp) has obtained confirmation from the US Bankruptcy Court for the Southern District of Texas for its reorganisation plan. 

The approval allows the packaging group to proceed with its financial restructuring and exit the Chapter 11 process. 

The court-approved plan was developed and funded with the backing of an ad hoc group of the company’s first-lien lenders and noteholders.  

Once the process is completed, kp expects to remove €1.3bn ($1.52bn) of funded debt from its balance sheet and move to new ownership with greater financial flexibility. 

The restructuring follows a €349m injection of new capital from existing first-lien creditors, which was used to support the company’s operations and the court-supervised proceedings.  

Throughout the process, kp has continued to operate in the ordinary course, including making payments to vendors, suppliers and business partners. 

All general unsecured claims will be either settled in full or reinstated when the company emerges from Chapter 11. 

Kirkland & Ellis advised kp as legal counsel, with PJT Partners as investment banker and Alvarez & Marsal as restructuring adviser.  

Joele Frank, Wilkinson Brimmer Katcher provided strategic communications support.  

The ad hoc group of first-lien lenders and noteholders was advised by Gibson, Dunn & Crutcher as legal counsel and Houlihan Lokey UK as investment banker. 

kp CEO Roberto Villaquiran stated: “We entered this process with a clear purpose - to provide kp with a strong financial foundation to grow our leading portfolio, drive cutting-edge innovation, and deliver excellence for our customers. With the court's approval of our plan, we are an important step closer to delivering on this goal, and doing so on an accelerated basis thanks to the continued support of our financial partners, who will become kp's new owners upon emergence.” 

Founded in 1965, Klockner Pentaplast manufactures rigid and flexible packaging and specialty films.  

The company operates 27 production sites across 16 countries and employs more than 5,000 people worldwide.