Deals
Oaktree-Led Lenders Said to Cut Klockner Debt by 80 Percent
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Klockner Pentaplast Group’s senior creditors led by Oaktree Capital Management LP plan to cut its debt to about 250 million euros ($315 million) from 1.25 billion euros if they take control of the plastic packaging producer through a restructuring, according to three people with knowledge of the situation.
The senior lenders aim to take ownership of the company through a debt-for-equity swap after Klockner breached loan terms at the end of last year, unless the creditors are repaid at par by June 22, said the people, who declined to be identified because the talks are private. Klockner Pentaplast, founded in 1965 in Montabaur, Germany, was bought by New York-based Blackstone Group LP in 2007, according to its website.