Largest shareholder and chairman Paul Coulson nears US$250M exit as creditors take control of debt-laden Ardagh Group

LUXEMBOURG – Irish billionaire Paul Coulson, the architect behind global packaging powerhouse Ardagh Group, is nearing an agreement to step away from the company in a deal that would see full control shift to creditors, according to a Bloomberg report.

The exit deal, valued at approximately US$250 million, marks the end of an era for Coulson, who has led the company’s expansion for more than 25 years.

The proposed deal comes amid ongoing efforts to resolve Ardagh’s massive US$12.5 billion debt burden, which has become increasingly unsustainable amid declining performance in key business segments.

Under the terms, Coulson would surrender both the company’s struggling glass packaging division and his majority stake in Ardagh Metal Packaging (AMP), its beverage can business listed on the New York Stock Exchange.

In exchange, Coulson will receive a one-time cash payout of around US$250 million. The settlement is designed to pave the way for a broader restructuring plan, including fresh capital injection and a new ownership structure.

Unsecured creditors are expected to become majority stakeholders, while secured creditors would see their debt reinstated at face value, coupled with a high-interest return.

Previously, Coulson had attempted to retain greater control through a plan to spin off AMP shares into a new company, offering 80% ownership to existing shareholders and only 20% to unsecured creditors.

However, this proposal was rejected, clearing the way for more creditor-driven restructuring.

Ardagh’s troubles have been mounting, particularly in its glass business, which saw a 6.7% drop in revenue in Q1 2025 to US$961 million.

In contrast, the company’s metal packaging division showed resilience, posting an 11% year-on-year revenue increase to US$1.27 billion in the same quarter, driven by growing demand in the beverage sector.

This uptick led to an improved full-year earnings outlook for AMP, briefly boosting hopes among investors.

Despite this, the broader debt load has weighed heavily on Ardagh’s financial stability.

Approximately US$2.5 billion in bonds are due for repayment in August 2026, and bondholders at the holding company level, who invested in roughly US$1.8 billion in high-yield securities, now face steep losses, with those bonds trading at just 4% of their face value.

Coulson’s control over Ardagh has been maintained through an 18.8% direct stake in the parent company and a 52.4% share in Yeoman Capital, which owns 33.9% of Ardagh, effectively giving him a 36.6% equity interest.

If finalized, the deal would mark a significant shift in the ownership and governance of one of Europe’s largest packaging firms, with creditors poised to assume control and chart a new course for the debt-laden group.

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