Klöckner Pentaplast Files for Bankruptcy to Cut $1.2bn Debt

Global packaging producer Klöckner Pentaplast (KP) has filed for Chapter 11 bankruptcy protection in the US to restructure its finances and reduce debt by around €1.3 billion ($1.2bn).

The prepackaged Chapter 11 process, filed in the US Bankruptcy Court for the Southern District of Texas, allows KP and certain subsidiaries to continue operating while reorganising. Ownership will transfer to some of its financial partners upon completion.

KP emphasised that global operations will continue without interruption, supplying rigid and flexible packaging for the pharmaceutical, food, beverage, and card industries.

“Our operations are continuing smoothly, and the support of our partners reflects their confidence in KP’s future,” said CEO Roberto Villaquiran. “We expect to emerge stronger and ready to drive innovation and growth.”

Founded in 1965, KP operates 27 plants in 16 countries, employs over 5,000 people, and celebrates its 60th anniversary this year.