Court Approves Milacron Asset Sale
Investors Avenue Capital and DDJ Capital will acquire nearly all of Milacron's assets in July.
June 29, 2009
Milacron, a supplier to the plastics and metalworking industries that along with its six subsidiaries filed for Chapter 11 bankruptcy protection in March, received court approval for the sale of its assets to an investor group.
The Southern District of Ohio's bankruptcy court approved the sale of substantially all of Milacron’s assets to a group of existing investors led by Avenue Capital Group and DDJ Capital Management, a distressed debt specialist. The deal is expected to close sometime in July.
The asset sale was initially agreed upon in May, when Milacron arranged to sell nearly all of its assets for $175 million to a company formed by Avenue Capital and DDJ Capital. The deal, however, was open to other bidders until late June.
"There was considerable interest in the company, but in the end, the existing investor group's offer was the highest," Dave Lawrence, Milacron's chief executive, said in a statement.
At the time of its bankruptcy filing, Milacron had liabilities of between $500 million and $1 billion. It is using proceeds from the asset sale to continue its business operations with substantially less debt.
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