Latest news with #ArdaghGroup
Irish Times
9 hours ago
- Business
- Irish Times
Paul Coulson offered $250m to walk away from Ardagh amid crunch debt talks
Businessman Paul Coulson has been offered $250 million (€218 million) by bondholders in Ardagh Group to walk away from the packaging empire he built over the past 25 years, as debt restructuring talks enter a crunch phase. The offer would see Mr Coulson cede control of the glass and metal containers giant, which has about $12.5 billion of borrowings, and abandon previous notions of retaining control of its prized Ardagh Metal Packaging (AMP) arm, the sources said. The proposal is one of a number of potential debt solutions under discussion in parallel with the company, a source said. All involve substantially addressing about $2.5 billion of bonds that fall due in August 2026 and would involve the injection of new money into the business, the source added. Bloomberg first reported the offer for Mr Coulson to hand over entire control of Ardagh Group to certain bondholders, indicating it is the most likely outcome even as a number of alternatives remain in play. READ MORE Under the proposal, unsecured creditors would take a majority stake in the group after the overhaul, Bloomberg reported. Secured creditors would have their debt reinstated at par, and receive a double-digit coupon, it said. A spokesman for Ardagh Group declined to comment on the current state of talks. [ Ardagh talks with creditor group break down over improving cans unit Opens in new window ] The development comes weeks after Ardagh Group walked away from talks with unsecured bondholders, who were being asked by the group to write off much of the $2.32 billion they are owed in exchange for taking full ownership of the glass containers part of the business. Mr Coulson had envisaged Ardagh Group spinning its shares the valuable AMP division into a new company (NewCo) that would be 80 per cent owned by Mr Coulson and other existing Ardagh Group shareholders. He proposed that unsecured creditors would only receive 20 per cent of the division. Ardagh Group currently owns 76 per cent of New York-listed AMP. Bobby Healy on why Manna drone delivery could be the 'biggest technology company in the world for its space' Listen | 67:08 Ardagh Group, which Mr Coulson built into one of the world's largest packaging companies through a series of debt-fuelled acquisitions, said more than a year ago that it was considering options to lower its $12.5 billion debt pile. The burden had become increasingly unsustainable in recent years amid weaker-than-expected earnings. Talks with the senior unsecured creditors became more complicated when Ardagh Group said in April that the beverage cans unit had turned a corner', helped by a rebound in activity across the energy drinks, sparkling water and health and wellness categories. [ Ardagh enlists restructuring experts to board as it looks to cut €12bn debt Opens in new window ] AMP reported its revenues grew by 11 per cent year-on-year in the first quarter to $1.27 billion and upgraded its full-year earnings forecast. However, Ardagh Group's legacy glass business saw its revenues drop 6.7 per cent to $961 million during the quarter as this arm of the group continued to struggle. Meanwhile, holders of some $1.8 billion of risky bonds issued by a holding company above the operating Ardagh Group are expected to lose almost all of what they are owed. These bonds are currently trading at about 4 per cent of their original value. Mr Coulson controls Ardagh Group through an 18.8 per cent direct stake in its ultimate parent company and a 52.4 per cent interest in a vehicle called Yeoman Capital, which owns 33.9 per cent of the group. He effectively owns 36.6 per cent of the equity in a business that traces its roots to the Irish Glass Bottle Company, founded in Dublin in 1932.
Bloomberg
10 hours ago
- Business
- Bloomberg
Irish Billionaire Coulson Nears Deal to Cede Ardagh to Creditors
Paul Coulson is nearing an agreement to hand creditors full control of Ardagh Group SA, the company he transformed into a global metal and glass packaging giant. The Irish billionaire is finalizing the details of a deal that would see him receive a one-off payment of about $250 million in exchange for handing over the company to debtholders after months of fraught negotiations, according to people familiar with the matter, who asked not to be named because they aren't authorized to speak publicly.
Irish Times
20-05-2025
- Business
- Irish Times
Ardagh talks with creditor group break down over improving cans unit
Ardagh Group's debt restructuring talks to a group of bondholders has broken down amid a standoff over how much Paul Coulson , the packaging giant's leading shareholder, will continue to own in its improving drink cans business. The heavily-indebted business proposed in March that a group of senior unsecured bondholders write off much of the $2.32 billion (€2.05 billion) they are owed in exchange for taking full ownership of the glass containers part of the business. The plan also envisaged Ardagh Group spinning its shares in its beverage cans unit, Ardagh Metal Packaging (AMP), into a new company (NewCo). This would be 80 per cent owned by Mr Coulson and other existing Ardagh Group shareholders – with the unsecured creditors receiving the remaining 20 per cent. However, the unsecured creditors issued a proposal on Sunday that would see them take 40 per cent, rather than 20 per cent, of AMP, which has seen is prospects improve in recent quarters even as the glass containers arm of the group continues to grapple with weak demand. READ MORE There is also disagreement over the ultimate value of AMP. 'The parties have not reached an agreement and are no longer in discussions,' said Ardagh Group in a statement on Tuesday. [ Ardagh cans unit 'turns corner' amid Coulson bid to keep control Opens in new window ] 'The company remains committed to putting in place a sustainable capital structure. The company will continue to review its options and may continue discussions with its stakeholders in the future relating to its capital structure and its applicable debt maturities.' Ardagh Group, which Mr Coulson built into one of the world's largest packaging companies through a series of debt-fuelled acquisitions over the past 25 years, said more than a year ago that it was considering options to lower its $12.5 billion debt pile. The burden had become increasingly unsustainable in recent years amid weaker-than-expected earnings. Talks with the senior unsecured creditors would have become more complicated when Ardagh Group said last month that the beverage cans unit had turned a corner', helped by a rebound in activity across the energy drinks, sparking water and health and wellness categories. 'I've entrepreneurial spirit in my veins' – Apprentice star Jordan Dargan Listen | 44:45 The group's 76 per cent-owned AMP unit, which is listed on the New York Stock Exchange, reported its revenues grew by 11 per cent year-on-year in the first quarter to $1.27 billion and upgraded its full-year earnings forecast. However, Ardagh Group's legacy glass business saw its revenues drop 6.7 per cent to $961 million during the quarter as this arm of the group continued to struggle. It is expected that the focus now switch to Ardagh Group's parallel discussion with senior secured creditors, who currently stand to be made whole under the group's debt-restructuring proposal. Progress towards an agreement at this level may lead to reengagement between the senior unsecured bondholders. Meanwhile, holders of some $1.8 billion of risky bonds issued by a holding company above the operating Ardagh Group are expected to lose almost all of what they are owed. These bonds are currently trading at about 4 per cent of their original value, according to Bloomberg data. Mr Coulson controls Ardagh Group through an 18.8 per cent direct stake in its ultimate parent company and a 52.4 per cent interest in a vehicle called Yeoman Capital, which owns 33.9 per cent of the group. He effectively owns 36.6 per cent of the equity in a business that traces its roots to the Irish Glass Bottle Company, founded in Dublin in 1932. The group also has a 42 per cent stake in a food cans business, called Trivium Packaging.
Irish Times
24-04-2025
- Business
- Irish Times
Ardagh cans unit ‘turns corner' amid Coulson bid to keep control
Ardagh Group said on Thursday that the outlook for its beverage cans unit is improving, as the group's main shareholder, Paul Coulson, vies to keep control of this part of his packaging empire even as he prepares to hand its troubled glass business over to creditors. The group's 76 per cent-owned Ardagh Metal Packaging (AMP) unit reported its revenues grew by 11 per cent year-on-year in the first quarter to $1.27 billion (€1.12 billion), driven by a 6 per cent increase in sales volumes. Earnings also rose. AMP chief executive Oliver Graham upgraded the subsidiary's sales and earnings guidance for the year, saying he now expects sales volumes to rise 3-4 per cent and earnings before interest, tax, depreciation and amortisation (Ebitda) to reach $695 million to $720 million, compared to $672 million for 2024. It previously targeted shipment growth of 2-3 per cent and Ebitda in the range of $675 million to $695 million. READ MORE Mr Graham said the drinks cans industry looks like it has 'turned a corner', helped by a rebound in activity across the energy drinks, sparking water and health and wellness categories. He said that a sector slowdown last year suggests that there was 'a breather after big growth in previous years'. Shares in AMP rallied as much as 26 per cent in early trading on Thursday on Wall Street. However, Ardagh Group's legacy glass business saw its revenues drop 6.7 per cent to $961 million during the quarter as this arm of the group continued to struggle. The trading update came as the Ardagh Group continues talks with bondholders on restructuring its estimated $12.5 billion debt mountain. The group's current proposal would see a group of senior unsecured bondholders write off much of the $2.32 billion they are owed in exchange for taking full ownership of the glass business. The plan also envisages Ardagh spinning its shares in AMP into a new company (NewCo). This would be 80 per cent owned by Mr Coulson and other existing shareholders – with the unsecured creditors receiving the remaining 20 per cent. Two hedge funds moved in March, within days of the plan being outlined, to sue Ardagh Group and its controlling shareholder, Paul Coulson, alleging that a restructuring plan for the company's debt would amount to fraud, designed to 'siphon value away' from certain bondholders in favour of the businessman and other insiders. The hedge funds, London-based Arini and Los Angeles-headquartered Canyon Partners, own more than 30 per cent of Ardagh's £400 million (€468 million) of unsecured bonds that are due to fall due in July 2027. 'The company strongly believes that the complaint is without merit and intends to vigorously defend against the proceedings,' Ardagh Group said in its first-quarter report on Thursday. Mr Coulson controls Ardagh through an 18.8 per cent direct stake in its ultimate parent company and a 52.4 per cent interest in a vehicle called Yeoman Capital, which owns 33.9 per cent of the group. He effectively owns 36.6 per cent of the equity in a business that traces its roots to the Irish Glass Bottle Company, founded in Dublin in 1932. Meanwhile, holders of some $1.8 billion of risky bonds issued by a holding company above the operating Ardagh Group are expected to lose almost all of what they are owed. These bonds were recently trading at about 5 per cent of their original value. AMP and Ardagh Group executives signalled on Thursday that they expected neither arm of the business to be materially directly affected by tariffs – even as it remains unclear how they would affect consumer demand.
Associated Press
08-04-2025
- Business
- Associated Press
Ardagh Group S.A. Q1 2025 Results and Investor Call Notification
LUXEMBOURG, April 8, 2025 /PRNewswire/ -- Ardagh Group S.A. will host its First Quarter 2025 earnings call on Thursday, April 24, 2025. An interim report for the first quarter will be posted to our website at midday BST (07:00 EDT) on April 24, 2025, at: https:/ A bondholder webcast and conference call will be held at 16:00 BST (11:00 EDT) on April 24, 2025. A full replay of the presentation will also be available at the same link shortly after the conclusion of the live presentation. International: +44 (0)330 165 4027 US: +1 800-289-0438 Conference code: 6593078 *It is not necessary to dial into the audio conference unless you are unable to join the webcast. Additional dial-in numbers are at this link, or simply click and enter your details to be connected. The link is active 15 minutes prior to the start time. Ardagh Group is a global supplier of infinitely recyclable metal and glass packaging for brand owners around the world. Ardagh operates 59 metal and glass production facilities in 16 countries, employing approximately 19,000 people with sales of approximately $9.1 billion in 2024.
