LUXEMBOURG (Realist English). Deutsche Bank and activist hedge fund Carronade Capital are seeking to block a $10 billion restructuring deal struck between Irish billionaire Paul Coulson and a majority of Ardagh Group bondholders, arguing that the agreement unfairly favors other creditors and shareholders.
Ardagh — one of the world’s largest manufacturers of glass and metal beverage containers — unveiled the plan in July after more than a year of negotiations with creditors owed over $10 billion. The company has been struggling with rising interest rates, soaring energy costs, and looming debt maturities.
Under the deal, Coulson — known in Ireland as “The Cooler” — will cede control of Ardagh to a group of bondholders. Shareholders would collectively receive $300 million, with just over $100 million going to Coulson personally.
The proposal also requires a full write-off of $1.7 billion in high-risk payment-in-kind (PIK) bonds, whose holders would instead receive a 7.5% equity stake in the company.
Deutsche Bank and Connecticut-based Carronade, which together own around 13% of the PIK debt, are attempting to block the restructuring, according to people familiar with the talks. The dissenting creditors claim the deal unfairly dilutes their position and are pushing for court intervention unless the company offers improved terms.
A person close to the restructuring, however, said they remain confident the transaction will proceed as planned despite opposition from the minority debtholders.
Neither Ardagh, Deutsche Bank, nor Carronade commented on the matter.
If approved, the deal will transfer control of the group to unsecured bondholders, including London-based Arini Capital Management, founded by ex–Credit Suisse trader Hamza Lemssouguer, and U.S. investor Canyon Partners, in a debt-for-equity swap. Bondholders will also inject $1.5 billion in new financing, while an Apollo Global Management loan issued last year will be repaid in full.
Ardagh has received near-total consent from its senior secured and unsecured bondholders, but support among PIK investors stands at roughly 82%, short of the 90% threshold required for a fully consensual restructuring.
Given that approval exceeds 75% across all debt classes, the company could move forward via a UK court-sanctioned scheme of arrangement if consensus cannot be reached.
Coulson, 73, built Ardagh into a global packaging giant through a series of leveraged buyouts, earning a formidable reputation in Europe’s high-yield debt market. Though he controls more than half of the company’s voting rights, his economic stake amounts to just 36%.
