Klöckner Pentaplast - comment

In line with our recent decision to sell our position, the packaging name is said to be struggling to convince suppliers to send their goods. Less than six months ahead of the Feb ’26 maturity of its €1.2 bn SSNs, negotiations are slow. KP is represented by K&E and PJT, while creditos have Gibson Dunn and Hengeler. Press reports are suggesting the company disclosed a steep drop in its crucial Pharma revenues and is stretching payables by €80m. As such, we wonder if the hitherto discussed €275-300m injection from SVP will be sufficient. A consensual process would be realised via CH11, and the chances that the SSNs are par on the other side are slim. We are discussing whether it's worth a short, in case the process fails.