Smurfit Kappa, Europe’s leading supplier of paper-based packaging, is seeking support from its banks and creditors to extend covenants and maturity on its debts to help overcome the threat of poor trading.

Ian Curley, chief financial officer, said changes to the terms on its debt facilities – the bulk of which mature in 2012 and 2013 – would help insulate the company, which has net debts of about €3.2bn, from an extended downturn in the sector. “If it is possible to buy insurance for a protracted downturn, why not buy it?” he said on Tuesday.