Virginia-based Klöckner Pentaplast of America, Inc., a leading manufacturer, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The company’s filing aims to restructure its finances along with several affiliated entities in the Klöckner Pentaplast Group.
Klöckner Pentaplast of America, Inc. Files for Bankruptcy
Virginia-based Klöckner Pentaplast of America, Inc., a leading manufacturer of plastic films and packaging materials, officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court on November 4, according to Pacer. The U.S. Bankruptcy Court for the Southern District of Texas assigned the case number 25-90660.
According to the official filing document, the firm has listed estimated assets between $1 billion and $10 billion and liabilities between $1 billion and $10 billion. The filing lists between 10,000 and 25,000 creditors. The filing is backed by a restructuring support agreement (RSA) negotiated with major creditors before the petition.
The petition was filed by Marc Rotella, the firm’s authorized signatory, and the case is being represented by John F. Higgins of Porter Hedges LLP, Houston.
Global Restructuring Effort
Klöckner Pentaplast’s parent company, KP International Holding GmbH, is headquartered in Germany and owns the entire firm. This bankruptcy petition is filed as a part of a global restructuring effort, and multiple other affiliated entities, including Kleopatra Finco S.à r.l., Klöckner Pentaplast GmbH, and LINPAC Packaging Limited. These entities are under a joint administration led by Kleopatra Finco.
Through these coordinated filings, the company aims to restructure its finances while maintaining operations. Additionally, the company has received approval to obtain debtor-in-possession (DIP) financing, ensuring sufficient liquidity to maintain daily operations throughout the reorganization process.
Key Details of the Case Filings
The firm has assured that despite this filing, the funds will remain available for the unsecured creditors.
To support the restructuring process running smoothly, the company has appointed the following advisors:
- Kirkland & Ellis LLP and Kirkland & Ellis International LLP as restructuring counsel
- Porter Hedges LLP as co-bankruptcy counsel
- PJT Partners, Inc. as investment banker
- Alvarez & Marsal North America, LLC as restructuring advisor
- Stretto, Inc. as claims and noticing agent
- Ernst & Young LLP as tax advisor
All these firms will help execute the company’s reorganization plan and ensure compliance with court requirements.
With the Chapter 11 filing, Klöckner Pentaplast of America, Inc. can restructure its finances while maintaining daily operations.
