Multi-Color Corporation Confirms Reorganisation Plan

KUALA LUMPUR, April 20 (Bernama) -- Multi-Color Corporation (MCC), a leader in prime label solutions, has confirmed its prepackaged plan of reorganisation and expects to emerge from prepackaged Chapter 11 in the coming weeks.

MCC President and Chief Executive Officer, Hassan Rmaile said with the support of financial stakeholders, MCC will emerge with a significantly deleveraged balance sheet and liquidity to support operations, invest in innovation, and continue delivering label solutions for its customers.

“I am grateful to our teammates, customers, and suppliers for their steadfast commitment and support throughout this process, and we look forward to the opportunities ahead,” he said in a statement.

Under the terms of the plan, MCC will complete a comprehensive restructuring transaction that significantly deleverages its balance sheet and recapitalises the business.

The restructuring reduces net debt by approximately US$3.8 billion, lowers annualised cash interest expense by more than US$330 million, and extends long-term debt maturities to 2033. (US$1 = RM3.95)

In addition, MCC will receive a US$889 million investment from CD&R and a group of existing secured lenders, and is expected to hold more than US$500 million in available liquidity post-emergence to support long-term growth and investment.

Plan confirmation follows a successful mediation and global settlement among all major constituencies in MCC’s prepackaged Chapter 11 cases, with more than 99 per cent of voting stakeholders approving the restructuring plan.

With approval from the United States Bankruptcy Court for the District of New Jersey, MCC expects to receive proceeds from the new equity investment and complete its financial restructuring in the coming weeks.

-- BERNAMA