Investment banker Jefferies & Co. Inc. of New York could be involved in the restructuring of Kl"ckner Pentaplast Group.
A June 15 Reuters report stated Jefferies has committed 650 million euros ($820 million) debt to back a buyout of Kl"ckner by Strategic Value Partners LLC and a group of junior lenders.
Strategic Value is a hedge fund in Greenwich, Conn.
Junior lenders have rejected a previous restructuring proposal involving senior lender Oaktree Capital Management LP and Kl"ckner owner Blackstone Group LP that would wipe out 450 million euros ($568 million) in junior lending, according to Reuters.
The new bid is backed by junior lenders, according to the report. It would see Jefferies back Strategic Value's bid by 650 million euros in debt and about 190 million euros ($240 million) in equity.
A Jefferies spokesman said he could not comment on the Reuters report.
Blackstone and Oaktree would need to get the sale funds by June 19 to avoid a covenant-breach waiver that expires June 22.
“While we will not speculate on the final structure of an agreement, the efforts of various parties to invest in our business have proven that KP is well-managed and runs an operationally strong business with a solid operational performance,” said Nancy Ryan, group director for corporate communications with Kl"ckner, in a prepared statement.
“The current-year business performance is completely in line with forecasts and above the trading results of the previous year,” she said.