Since the 1980s, people have debated the environmental impact of packaging. Much of that debate focused on fast-food chains using styrofoam, but in recent years, the discussion has also involved Amazon and its propensity to use larger boxes than needed for the items it ships.

Most companies that made the choice to eliminate environmentally unfriendly packaging did so after public pressure. McDonald’s pledged to get rid of foam packaging from its global system by the end of 2018.

The company said, in a press release that’s no longer on its website, that “the environmental impact of our packaging is a top priority” and that “eliminating foam is an important step that will continue to raise the bar for our system and our industry.”

That move was pushed by environmental group “As You Sow,” which pushed the measure at a shareholders’ meeting.

“This sends an important message to other quick service food companies who may still be using foam. We also hope McDonald’s will next turn its attention to other single-use items like plastic straws and cup lids that pose hazards to marine animals and add to the tsunami of plastic waste afflicting world oceans,” As You Sow Senior Vice President Conrad MacKerron in a press release.

McDonald’s decision in this area pushed other companies to do the same. No company, however, could make the switch if recyclable and sustainable packaging did not exist.

Now, one of the global leaders in the space, Klöckner Pentaplast, has filed for Chapter 11 bankruptcy.

Klöckner Pentaplast files for Chapter 11 bankruptcy

You almost certainly have never heard of Klöckner Pentaplast, but you likely encounter the company’s products on a daily basis.

“Klöckner Pentaplast (kp) is a plastics manufacturer that is purpose-driven to deliver the sustainable protection of everyday needs,” the company shared on its website. “Our experts create innovative films and trays such as blister packaging that provide product safety, help avoid food waste, safeguard medication and medical devices, and protect the integrity of countless durable products with our pharmaceutical packaging.”

Basically the company makes food, pharmaceuticals, and consumer packaging as well as construction materials.

Some examples of its products include:

Pharmaceutical packaging

  • Products: Blister packs, rigid packaging, medical-grade films.
  • Why it matters: Keeps medications safe, sealed, and tamper-evident. Pills, capsules, and over-the-counter drugs often rely on kp packaging for shelf life and patient safety.
  • Examples: Pills in a blister pack (like allergy meds or vitamins) that consumers pick up at retail pharmacies.

Food and beverage packaging

  • Products: Films, sheets, and barrier packaging for perishable foods.
  • Why it matters: Extends shelf life, keeps food fresh, and allows for clear packaging for retail display.
  • Examples: Snack trays, ready-to-eat meals, or cheese packaging — the kind you see in supermarkets.

Specialty films and sheets

  • Products: Films for industrial uses, medical devices, labels, and high-barrier films for food/freeze protection.
  • Why it matters: These products are critical in maintaining quality and safety for industrial and medical applications.
  • Examples: Laminates for electronics, protective films, or moisture/barrier packaging.
Klöckner Pentaplast makes food packaging.

Klöckner Pentaplast

Klöckner Pentaplast Chapter 11

“Klöckner Pentaplast, the global rigid and flexible packaging and specialty film company, entered into a restructuring support agreement (RSA) with ‘a significant majority’ of its financial backers on the terms of a comprehensive financial restructuring plan to reduce the company’s funded debt by approximately €1.3 billion, and transfer ownership to some of those financial partners,” Packaging Digest shared.

The company shared some key details about the filing in a press release:

  • The Restructuring Support Agreement will reduce the company’s funded debt by approximately €1.3 billion.
  • It initiated a voluntary prepackaged United States Chapter 11 process to implement the terms of the agreement.
  • Operations are continuing without interruption across the company’s global footprint.
  • It will secure €215 million in new financing to support business during the court-supervised process.

“KP intends to complete the financial restructuring process as quickly and efficiently as possible while continuing to operate in the ordinary course with no interruption to ongoing operations,” the company shared.

Related: 101-year-old shipping company files for Chapter 11 bankruptcy

Under the terms of the filing and subsequent agreements, the company fully expects to pay vendors, suppliers, and business partners in full for goods received and services provided before and after the filing.

“KP’s entities in the following countries are not included in the U.S. Chapter 11 process: Argentina, Belarus, Brazil, Canada, China, Czech Republic, Egypt, India, Italy, Jersey, Mexico, Poland, Portugal, Russia, Switzerland, Thailand, Turkey, and UAE. Additionally, certain kp entities in Germany, Luxembourg, Netherlands, Spain, UK, and USA are not included in this process,” according to the company.

Klöckner Pentaplast Chapter 11 details

  • Filing / Process Type:
    Klöckner Pentaplast (kp) has initiated a voluntary, pre‑packaged Chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas.

    Source: PR Newswire

    Multiple related entities are jointly administered under this restructuring.

    Source: BKalert

  • Restructuring Plan:
    The company has entered into a Restructuring Support Agreement (RSA) with a majority of its financial partners.

    Under the RSA, it plans to reduce roughly €1.3 billion of its funded debt.

    Ownership will shift: After restructuring, certain financial partners will become the new owners.

    Source: PR Newswire

  • Financing:
    Klöckner Pentaplast secured €215 million in DIP (debtor-in-possession) financing to support operations during the Chapter 11 process.

    The DIP financing, alongside cash from ongoing operations, is intended to cover obligations during restructuring.

    Source: PR Newswire

  • Operational Status:
    KP says its global operations will continue uninterrupted during the restructuring, and it plans to “pay all vendors, suppliers and business partners in full” for both pre- and post-filing services.

    Not all international entities are part of this U.S. Chapter 11 process; several countries/subsidiaries are excluded.

    Source: PR Newswire

  • Leadership/Advisors:
    CEO Roberto Villaquiran highlighted that the restructuring will give the company a “stronger financial foundation” from which to innovate and respond to customer needs.

    Source: Packaging Impressions

“Lenders to German plastics manufacturer Kloeckner Pentaplast have been asked to sign up to a restructuring agreement providing €420m of debtor-in-possession (DIP) and haircut around 68% of first lien debt,” according to 9fin sources.