As part of a debt restructuring plan, Paul Coulson, Chairman of Ardagh Group, is being offered USD 250 million to release control over the company. Creditors would take charge of the Group’s glass operations and stakes in Ardagh Metal Packaging (AMP) as part of the proposed deal.
The offer and debt restructuring plan are meant to address a heavy debt worth USD 12.5 billion. Under the proposed plan, bonds would refinance roughly USD 2.5 billion by August 2026, and would include undertaking recapitalisation efforts.
While AMP had greater financial performance In Q1 revenue, gaining 11 percent in the beverage cans division and earning USD 1.27 billion, glass operations dipped on Q1 performance to 6.7 percent, suffering a USD 961 million loss, and there are further signs of a weakening glass packaging market.
Initially, Coulson had offered to split shares from AMP to create new equity, and for the existing shareholders to retain an 80 percent stake while allocate the remaining 20 percent to the unsecured creditors. Under this counter-offer, unsecured creditors would hold a significant stake in the Group.