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Kloeckner Pentaplast is due to file for Chapter 11 within the next 24 hours with a restructuring deal that will see creditors take the keys to the business, according to 9fin sources.

The German plastic manufacturer asked its creditors to vote on the restructuring support agreement last week, according to the sources.

Kloeckner is something of an outlier in the European market for electing to use a US Chapter 11 process over a domestic or English restructuring process. The German firm’s decision was motivated by the possibility of raising super senior DIP financing to support liquidity through its restructuring process, according to sources.

Kloeckner’s restructuring will involve the group’s first lien creditors taking over the business from its sponsor Strategic Value Partners (SVP). The second lien holders will receive €17.5m of the 1L takeback paper, the sources said.