Due to a sweeping debt restructuring at Ardagh Group, billionaire Paul Coulson, who has worked at the global packaging giant for over 35 years, will have to relinquish his control over the company. Creditors will take over the charge by paying Coulson USD 250 million in return as part of the proposed deal.
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With the USD 250 million, Coulson is asked to exit his powers over the Group's glass operations and stakes in AMP. It has surfaced that the firm is undertaking debt restructuring due to heavy debt worth USD 12.5 billion, where bonds will refinance roughly USD 2.5 billion by August 2026, besides undertaking recapitalisation efforts.
Currently, AMP's 76 per cent is owned by the Ardagh Group, which reportedly had greater financial performance in the recent quarters. In Q1 revenue, the packaging firm gained 11 per cent in the beverage cans division, earning USD 1.27 billion. In contrast, the glass operations of the company represented a dip in its Q1 performance by 6.7 per cent, wounding at USD 961 million, and it is forecasted to show a downward trend.
However, after the completion of debt restructuring, the unsecured creditors would hold a significant stake in the Group, and the secured one would be rehabilitated at par with a high coupon rate. The initial proposal of Coulson was to spin off a certain number of shares from the AMP division to form new equity and for the existing shareholders to retain an 80 per cent stake and allocate the remaining 20 per cent to the unsecured creditors.
To date, Coulson initiated his control over AMP via an 18.8 per cent direct stake in its ultimate parent and an additional 52.4 per cent interest in the Yeoman Capital, owing 33.9 per cent of the Group, with his equity shares being 36.3 per cent.
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