The fog of financial problems enveloping rigid films manufacturer Klöckner Pentaplast (kp, Montabaur / Germany; www.kpfilms.com) seems to have lifted – for most recent coverage, see Plasteurope.com of 19.03.2012. On 21 June the German company announced its successful recapitalisation and a strengthening of its capital structure, following a EUR 190m cash equity injection from a group of new investors led by Strategic Value Partners (SVP, Greenwich, Connecticut / USA; www.svpglobal.com). In addition, kp was awarded new debt facilities by Jefferies & Company (New York / USA; www.jefco.com). Following the financial injection, SVP assumed majority ownership of the company.

The recapitalisation and debt facilities have allowed the German group to repay EUR 800m of first lien senior secured credit facilities. In addition, kp has slashed in half its total debt, from EUR 1.26bn to EUR 630m. Commenting on the transaction, kp chief executive Christian Holtmann said, “The committed efforts of various parties to invest in our business have proven that this is a well-managed, operationally strong business with a financially resilient business model.” He added that kp would continue to focus on its strengths.

Founded in 1965, the Montabaur-based group operates 17 production facilities in 11 countries worldwide. Its workforce of more than 3,000 last generated sales of more than EUR 1 bn.