Published 5 August 2026, 18:01:58 GMT​​

By Libby Cherry and Irene García Pérez

(Bloomberg) -- ​A bondholder group is set to take over Pfleiderer, the struggling wood-paneling company backed by Strategic Value Partners, despite the firm raising fresh debt
just eight months ago.

The bondholders include Arini Capital Management and Silver Point Capital, according to people familiar with the matter. The group, which holds more than 80% of the notes due 2029, has signed an agreement which involves the sale of shares in Pfleiderer Group BV & Co. KG as part of a broader restructuring, according to a July 30 statement sent to bondholders. 

Pfleiderer is one of a number of European companies that have exploited flexibility in bond documents to raise new funds, but the case shows that such deals aren’t always sufficient to stave off decline. In December, Pfleiderer raised €135 million ($156 million) in new financing from credit fund Monarch Alternative Capital and a shareholder loan, secured on a unit that was shifted away from its existing bondholders.

By separating the Silekol unit, the debt deal acted to “effectively remove the most cash-generative business” from Pfleiderer’s creditors, S&P Global Ratings analysts said in
February.

Representatives of Arini, Silver Point and Strategic Value Partners declined to comment. Pfleiderer said in a separate statement it was developing a business plan while work continues for the deal’s completion. 

Burning Cash

However, since then, Pfleiderer has still been burning cash, with weakness in the European construction industry driving stress across the chemicals and building materials sectors. The business supplies products used in furniture, worktops and wall coverings, with demand tied to development and renovation activity.

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“From a company perspective, the restructuring is a sensible step, as the capital structure was not sustainable,” said Felix Fischer, an analyst at Lucror Analytics, in a note Wednesday. 

Bondholders have also provided Pfleiderer with about €87 million in new financing, including €47 million of initial commitments, to bolster the company’s liquidity, according to the statement to bondholders. 

The agreement comes less than a year after SVP handed over control of another of its ailing German portfolio companies, Klöckner Pentaplast. The company filed for Chapter 11 in November following a liquidity squeeze that scuppered a more straightforward refinancing that would have left the fund in control.