Milacron Inc. announced yesterday that it had signed a definitive agreement to sell largely all of its assets to a syndicate composed of affiliates of Avenue Capital Group, certain funds and/or accounts managed by DDJ Capital Management LLC, and other unspecified entities. The agreement is substantially the same as the agreement-in-principle announced on March 10 when Milacron filed for Chapter 11 protection in Federal Bankruptcy Court.
The purchasing price is estimated at about $175 million. The syndicate will repay or assume Milacron’s debtor-in-possession loan facilities, assume certain other liabilities, and provide additional consideration to noteholders not part of the syndicate. The acquisition is part of a comprehensive financial restructuring intended to allow Milacron to continue as a going concern with substantially less debt.
In a prepared statement, Milacron president and CEO Dave Lawrence called the agreement a significant milestone in the restructuring process. "Since we began this reorganization process on March 10, we have experienced a great outpouring of support from across the industry. This, coupled with the faith our investors have in Milacron's brands, products, and people, positions us well for sustained long-term success moving forward."
The sale is subject to Bankruptcy Court approval, and contingent on any other competing bids that must be submitted by June 24, among other conditions. If no other qualified bids arrive by June 24, Milacron will request court approval of the sale on June 26. If any qualified bids are received, an auction will be held on July 17 with Milacron assets going to the highest bidder approved by the Bankruptcy Court. —[email protected]