Frequently asked questions
What did kp announce?
- kp is taking steps to position our company for long-term success as we continue shaping the future of sustainable packaging and film solutions.
- We have entered into a Restructuring Support Agreement with a significant majority of our financial partners on the terms of a comprehensive financial restructuring plan.
- The restructuring plan will enhance kp’s financial position by substantially reducing our debt, increasing our cash, and strengthening our balance sheet.
- As part of this plan, our financial partners will become kp’s new owners. Their investment in and commitment to kp demonstrates their confidence in our business and the opportunities ahead.
- To implement the restructuring plan, kp and certain of our subsidiaries and affiliates initiated a voluntary US Chapter 11 process.
- Importantly, during this process, our global operations are continuing without interruption, and it will not impact our customers or how we work with them.
Why is kp taking these steps?
- We are taking steps to position our company for long-term success as we continue shaping the future of sustainable packaging and film solutions.
- The agreement we have entered into with our financial partners will enhance kp’s financial position by substantially reducing our debt, increasing our cash, and strengthening our balance sheet.
- The court supervised process allows us to gain access to new financing to support our global operations without interruption so that our customers can continue to rely on kp for innovative and sustainable packaging, films and services.
- With a stronger financial foundation and new owners, we will emerge from this process better positioned than ever to continue our journey as a leading sustainable packaging solutions company.
What’s the difference between Chapter 11 in the United States and financial restructurings in other countries?
- Chapter 11 is a well-established legal process in the United States that allows companies to restructure their finances through a court-supervised proceeding while continuing to operate their businesses.
- This specific process is unique to the US and it is not a liquidation or insolvency.
- Importantly, the Chapter 11 process allows companies to access specialised financing (DIP financing) to fund operating needs and satisfy business obligations.
- The goal of filing for Chapter 11 is for a company to emerge from the process as a more financially stable entity. By restructuring its existing debt and obligations, the company can move forward as a stronger organisation.
What is “prepackaged” Chapter 11 financial restructuring?
- A “prepackaged” Chapter 11 financial restructuring means that a company has reached an agreement, like the RSA, with a group of its financial partners on the terms of a restructuring plan prior to filing for Chapter 11 and has the necessary level of support to confirm such a restructuring plan.
- This typically enables a company to move through the financial restructuring process on an expedited basis.
- We appreciate the significant support of our financial partners and their confidence in our vision for the future and opportunities ahead.
Is kp operating as normal?
- Yes – our global operations are continuing without interruption.
- Customers can continue to rely on kp for innovative and sustainable packaging, films, and services.
When does kp expect to implement this plan?
- We intend to complete the financial restructuring process as quickly and efficiently as possible.
What does this mean for customers?
- Supporting our customers and their businesses remains our top priority.
- Our global operations are continuing without interruption, and this process has no impact on our customers or how we work with them.
- We remain focused on doing what we have done for the past 60 years: delivering sustainable packaging solutions to meet our customers’ needs through teamwork, innovation, and excellence.
- We intend to emerge from this process better positioned than ever to continue our journey as a leading sustainable packaging solutions company.
- We value our customer relationships and look forward to continuing to serve them for years to come.
What does this mean for vendors, suppliers and other business partners?
- Under the terms of the agreement with our financial partners, we fully expect to pay vendors, suppliers and business partners in full for goods received and services provided before and after the filing.
- To support our operations and ensure that we satisfy our business obligations during this process, our financial partners have also agreed to provide kp with new financing.
- Upon Court approval, this financing, together with cash generated from ongoing operations, will provide ample liquidity to support the business during the financial restructuring process.
- Our global operations are continuing without interruption, and we are continuing to work closely with our partners to ensure our mutual success.
- We appreciate the continued partnership and support of all our partners.