Lenders to Take Over SVP’s Klöckner Pentaplast in Bankruptcy (2)

Lenders are poised to take over Klöckner Pentaplast, a German packaging company owned by Strategic Value Partners LLC, in Chapter 11 bankruptcy.

Creditors will become new owners of the company in a deal that will slash funded debt by around €1.3 billion ($1.5 billion), according to court papers filed Wednesday in the US Bankruptcy Court for the Southern District of Texas. Klöckner filed for a prepackaged proceeding with around €2.3 billion in funded debt.

The company, which makes coverings for foodstuffs, pills and credit cards, has faced softer consumer demand as well as higher raw material prices, like ...