Multi-Color Corporation (MCC) has announced the completion of its financial restructuring process and emergence from a prepackaged Chapter 11 bankruptcy proceeding.
The company said the restructuring reduced net debt by approximately $3.8 billion (£2.84 billion), lowered annualised cash interest expense by more than $330 million (£247 million), and extended long-term debt maturities to 2033. More than 99% of voting stakeholders voted to approve MCC’s Plan of Reorganisation, according to the company.
Upon emerging from Chapter 11, MCC also received an $889 million (£665 million) investment in new common and preferred equity from CD&R and a group of the company’s existing secured lenders. The company said the funding is intended to support long-term growth and investment.
“Today marks a significant milestone for MCC, as well as our customers, teammates, and partners who have supported us throughout this process,” said Hassan Rmaile, president and chief executive officer of MCC. “Over the last several months, we continued to diligently serve and win clients, sharpened our operations, and now – with a significantly stronger balance sheet – we have the financial foundation needed to accelerate investing in the capabilities that make us the global partner of choice for innovative, premium labelling solutions across verticals. We enter this next chapter focused on driving profitable growth, ramping operational excellence, and investing in our people and culture as we work to deliver sustainable long-term value for all stakeholders.”
Following the completion of the restructuring, CD&R remains MCC’s majority owner, while a number of the company’s existing lenders have become minority equity holders.
