A group of bondholders in Italian packaging manufacturer Reno de Medici has tapped Evercore as financial advisor and entered into a cooperation agreement as the company faces mounting liquidity pressures, according to 9fin sources.

The group includes large holders such as M&G, Bain, BlackRock, King Street, and Sound Point, as well as Arini, which has recently boosted its holdings in the company’s debt, the sources said.

Paul Hastings is working with the group as legal counsel, while the company, owned by Apollo, has hired PJT Partners and Paul Weiss, as 9fin reported. Reno has also brought in Alix Partners to assist with operational turnaround measures.

To bolster liquidity, the company has begun pursuing a series of asset disposals and is in advanced negotiations to sell assets from shuttered plants, management said on its most recent earnings call. Fitch Ratings estimates the disposals could yield €60m-€70m in proceeds by 2026, offering a temporary buffer against ongoing cash burn.

Reno’s debt structure includes a super senior €146.6m RCF due in 2028, which was increased last year and is currently €95m drawn, €600m SS FRNs due 2029, €41.4m factoring, and €56m of other debt.

In 2021, Apollo took Reno private, acquiring a 67% stake from former majority shareholders Cascades and Caisse de dépôt et placement du Québec at €1.45 per share.

Despite higher revenues in the first half of 2025, Reno’s profitability has continued to deteriorate. EBITDA declined 5.8% year-on-year to €30.6m (from €32.5m in H1 2024), as raw-material and service costs rose 13% to €307.4m and personnel expenses also climbed.

Reno has been hit by a broad downturn in the European packaging sector, which is contending with weak consumer demand, elevated costs, and structural shifts in global production.

Slowing economic growth and subdued consumption have weighed heavily on volumes, while companies across the industry are struggling to pass higher input costs through to customers. At the same time, competitive pressures are intensifying as European manufacturers face shrinking global market share and growing competition from lower-cost regions, especially Asia.

For companies like Reno, these dynamics have created a challenging operating environment, amplifying liquidity pressures and increasing the urgency of operational and restructuring initiatives.

Apollo, Reno, and Evercore declined to comment.

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