A subsidiary of sustainable packaging giant Ardagh Group has turned to a U.S. bankruptcy court, filing for Chapter 15 recognition in New York to anchor restructuring proceedings already underway in Luxembourg.
Luxembourg Ruling Triggers U.S. Filing
In a declaration filed Sunday, Torsten Schoen, the foreign representative for ARD Finance SA, said a Luxembourg court ruled after a Dec. 3 hearing that creditors could lawfully push the company into reorganization. The Chapter 15 filing asks a U.S. court to recognize and give effect to those foreign proceedings.
ARD Finance is a financing and holding arm within Ardagh Group, serving as a critical link in the company’s global capital structure.
Lawsuit by Noteholders Set the Stage
The Chapter 15 move follows litigation launched in the United States by minority holders of ARD’s payment-in-kind (PIK) notes, including Carronade Capital Master LP, Crown Managed Accounts SPC, and Deutsche Bank Securities Inc.
On Nov. 13, those creditors sued in New York state court seeking repayment of roughly €250 million, alleging an event of default under the notes’ governing indenture.
