Pillarstone makes first exit from Italian NPL book

The sale and refinancing of Cuki means Pillarstone made a full recovery.

KKR’s non-performing loan (NPL) platform, Pillarstone Italy, has successfully exited food packaging company Cuki.

Cuki was acquired as part of Pillarstone’s first credit portfolio from UniCredit and Intesa Sanpaolo in 2015 alongside several other companies under restructuring.

All of Cuki’s share capital has been sold to Germany-based food and packaging provider Melitta Group Management with refinancing of all debt currently in place. Pillarstone said it made a full recovery of its credit exposure.

Pillarstone was founded by John Davison and KKR in 2015 as a pan-European platform to support banks managing their non-core and underperforming assets. Davison was formerly global head of strategic investments at Royal Bank of Scotland and serves as CEO of Pillarstone.

The investor aims to support re-launch plans of companies with solid business models that are facing financial difficulties.

European banks have an estimated €1.2 trillion of non-performing loans on their books and have been under pressure from national governments and European Union regulators to reduce their exposures, providing opportunities for private credit specialists to acquire portfolios.