Troubled Ardagh Group said proceedings issued against the firm by a group of bond investors are “without merit” on Monday, as it published the latest proposals for a possible debt restructuring.
The investors lodged a complaint with the Supreme Court of the State of New York last month, alleging Ardagh Group set up a holding company in 2022 between itself and its listed can business Ardagh Metal Packaging that was designed to distance the beverage cans asset – which currently has a market value of $1.72 billion (€1.55 billion) and is 76 per cent owned by the group – from claims by group bondholders. The legacy glass business of Ardagh was already insolvent at the time, it claims.
“Ardagh strongly believes that the complaint is without merit and intends to vigorously defend against the proceedings,” the company said in a statement.
The comments came as Ardagh Group, which Irish financier Paul Coulson built into an international powerhouse, published a wider update on the talks with two groups of bondholders who have formed separate ad hoc groups to negotiate with the company on the restructuring.
Under a new proposal to the group of senior secured noteholders, Ardagh reiterated its suggestion to spin its shares in the metals packaging business into a new company that would be owned by Ardagh and participating senior unsecured noteholders.
Among the other measures it suggests are proposing the exchange of the senior secured debt in full into $1.9 billion of new senior secured debt at Ardagh Group although with an increased interest rate and $600 million of senior secured debt in the new metals company both maturing in 2030m. That compares to a previous proposal of $550 million.
