Private Lenders Seize Control of Struggling Pallet Giant 48Forty
Private credit lenders are set to take over 48Forty Solutions, a major pallet company grappling with debt. The restructuring deal, anticipated by the end of the year, will see firms like Antares Capital and KKR assume control of the business. The move follows months of financial hardships, including missed interest payments since August.
The takeover will erase around $1 billion in liabilities from 48Forty's balance sheet. Lenders, spearheaded by Antares and KKR, plan to infuse roughly $75 million in fresh debt to stabilize the company. As part of the deal, they will also install a new board, with Antares and KKR each securing two seats.
The deal will transfer control of 48Forty from its current owners to its lenders. With new leadership and reduced debt, the company aims to regain financial traction. The outcome will hinge on the success of the $75 million injection and operational changes, including potential plant closures.
