KUALA LUMPUR, Feb 5 (Bernama) -- Multi-Color Corporation (MCC), a global leader in prime label solutions, has received approval from the United States Bankruptcy Court for the District of New Jersey for first day relief related to its prepackaged Chapter 11 filing on Jan 29.
“The approval of our first day motions marks an important milestone in our financial restructuring, which will allow us to operate in the normal course as we deleverage our balance sheet and strengthen our capital structure.
“We remain focused on providing best-in-class solutions for our customers and executing on our strategic priorities. We look forward to advancing through this process to further position MCC for long-term growth and investment to best serve our customers,” said its President and Chief Executive Officer, Hassan Rmaile in a statement.
As part of the relief, the court granted MCC immediate access to US$125 million of a US$250 million debtor-in-possession (DIP) new-money financing provided by certain holders of its secured first-lien debt and its equity sponsor, CD&R. (US$1=RM3.92)
The court also granted MCC authority to pay trade vendors and suppliers in full in the ordinary course, maintain wages and benefits without interruption, satisfy employee-related claims, and perform other critical functions necessary to ensure uninterrupted operations.
As previously announced, MCC entered into a restructuring support agreement supported by holders of approximately 72 per cent of its secured first-lien debt and CD&R.
The transaction will significantly deleverage MCC’s balance sheet, reducing its net debt from approximately US$5.9 billion to about US$2.0 billion.
The agreement also provides that CD&R and a group of MCC’s existing secured lenders will make a US$889 million new common and preferred equity investment to support long-term growth and investment. Upon emergence, MCC is expected to have more than US$550 million in liquidity.
-- BERNAMA
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