Gates Capital Management and affiliates have emerged with a controlling-type position in XBP Global Holdings, Inc. following Exela Technologies BPA’s Chapter 11 restructuring that became effective 29 Jul 2025. The Gates Capital Funds received 31,931,506 common shares, equal to 27.2 % of the 117.5 M shares outstanding, and now hold shared voting and dispositive power over the entire block (no sole power).
The stake was issued in exchange for (i) the Funds’ 11.5 % First-Priority Senior Secured Notes due Apr-2026 and (ii) back-stop commitments that provided $80 M of DIP financing, of which Gates supplied c.$39 M. In addition, the Funds obtained $96 M principal of 12 % First-Priority Senior Secured “Rollover Exit” Notes maturing 2030.
Governance concessions include a one-time right for Consenting Creditors (including Gates) to appoint four of the board’s directors; Regina Paolillo, Robert D. Pryor, Sanjay Srivastava and Randal T. Klein were installed while two incumbent directors resigned.
A Registration Rights Agreement obliges the issuer to file and maintain shelf registrations, enabling Gates to exit or monetize the position. The Reporting Persons indicate no current plans for additional transactions but reserve the right to buy, sell or hedge XBP securities.