On Aug. 2, 2024, Germany-based wood panel manufacturer Pfleiderer Group B.V.&Co. KG announced it had received consent from approximately 99% of its noteholders to extend the maturities of its €750 million senior secured notes (SSNs) by three years. Lenders will receive a margin uplift (albeit accruing) and owner Strategic Value Partners will provide €75 million equity. The company intends to use the proceeds from the equity injection to fund growth initiatives. We view the proposed transaction as distressed and believe that Pfleiderer would likely have defaulted on its debt obligations in the next two years without this transaction. This transaction does not address Pfleiderer's cash generation, which we continue to view as insufficient for the group's high debt
