SVP in Debt Talks With Kloeckner Pentaplast’s Lenders (1)

Strategic Value Partners and a group of creditors to Kloeckner Pentaplast are in talks to restructure the German packaging company’s balance sheet as it faces ongoing earnings pressure from rising costs, according to people with knowledge of the matter.

Creditors agreed to provide a bridge loan of around €110 million ($128 million) that is expected to close imminently in the midst of the ongoing discussions over the restructuring, said the people, who asked not to be identified discussing private information. SVP is the controlling shareholder of Kloeckner Pentaplast.

An earlier proposal to amend and extend the company’s current debt obligations ...