Distressed investor Strategic Value Partners has recouped all of its investment in German plastics manufacturer Klöckner Pentaplast through a debt restructuring that made use of controversial payment-in-kind notes.

SVP has sold €225m of senior PIKs - a form of debt in which interest is compounded and not repaid until maturity - at an interest rate of 11%. The proceeds will be used to return SVP all of the original €190m equity investment it made last June, with the remainder used to fund general corporate purposes and pay fees and expenses related to the transaction.