Krokus was a heavy metal band from the 1970's and 1980's. A fan (Bill Noland) reports he heard a live recording of Krokus covering part of Peel The Paint in the middle of another song. However, Peter Waelti of Krokus Online says Krokus "never covered a Gentle Giant cover or interacted with them at all." (2008) (Thanks to Vasylyovych Volodymyr for this information.)
Fan Petri Lampela reports that "the Krokus song Our Love includes a riff straight out of Peel The Paint; that would explain the confusion about a cover." You can hear it on YouTube at 3 minutes, 32 seconds.