MONTABAUR, GERMANY (April 6, 10:20 a.m. ET) — It could take nearly three more months of negotiations before the ownership and financial structure of film and sheet major Kl"ckner Pentaplast Group have been worked out, according to a KP spokeswoman.
Nancy Ryan did not confirm or deny an April 5 Bloomberg report that said another group is trying to purchase KP. The group is reportedly led by Strategic Value Partners LLC, a hedge fund based in Greenwich, Conn., and includes other junior creditors that could lose their investment in a debt restructuring.
A Bloomberg report in March indicated that Oaktree Capital Management LP was involved in discussions with KP owner Blackstone Group LP. KP did not confirm those negotiations either.
“The process is expected to be completed by the end of June and does not affect KP's daily business and is completely independent from KP's solid operational performance,” Ryan stated in an April 5 e-mail correspondence.
Representatives of Strategic Value and Blackstone did not respond to requests for an interview. Bloomberg based its report on two undisclosed sources that it said are knowledgeable about the negotiations. The sources said KP owes junior lenders almost $459 million. The junior lenders would set up a new debt facility and repay senior lenders, including Oaktree Capital, Bloomberg reported.
“Constructive stakeholder discussions are ongoing, and in order to provide a framework for these discussions, the company is conducting an [mergers and acquisitions] process,” Ryan said. “This is a common procedure and is being performed by a reputable financial adviser.”
Lazard & Co. has been advising on a possible sale of KP.
KP is a leader in film and sheet for pharmaceutical, medical, food, electronics, thermoforming, printing and specialties. It is based in Montabaur. Ryan is based at Klockner Pentaplast of America Inc. in Gordonsville, Va. KP said last year it was evaluating whether to realign its balance sheet after Standard & Poor's downgraded its credit rating.