Milacron Inc. USA to be Sold to Investor Group
Milacron Inc. announced today that it has filed for voluntary Chapter 11 protection to make the sale to an investor group possible. Chapter 11 which is only applicable in North America gives the Board time and a controlled setting to restructure the company’s balance sheet and to establish a new capital structure. During this process Milacron will be protected against creditors’ claims. The day to day business will continue uninterrupted under the supervision of the existing Board and the new CEO Dave Lawrence appointed in November 2008. 40 million USD of fresh liquidity will be provided by the investors Avenue Capital Group and DDJ Capital Management LLC. In a second step they will purchase substantially all of the company’s assets. Milacron will thereafter continue as a going concern with substantially less debt.
Chapter 11 is strictly limited to the US and Canadian Milacron Companies. Milacron BV Netherlands, the holding company owning all European businesses is not affected. European businesses will continue to operate as independent legal entities and with their own separate cash management.
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