SVP in Advanced Talks to Extend Kloeckner’s Senior Debt

Strategic Value Partners and a group of creditors of Kloeckner Pentaplast are in advanced talks to extend the maturity of the German packaging company’s senior debt as it tackles inflation and waning demand, according to people with knowledge of the matter.

As part of the discussions, the group of senior creditors have asked the US alternative investment firm — the controlling shareholder of the company — to inject about €300 million ($343 million) of equity into Kloeckner Pentaplast, said the people, who asked not to be identified discussing private information. The creditor group is being advised by Gibson Dunn & Crutcher and Houlihan Lokey Inc.