Batavia, OH-based Milacron Inc., a global supplier of plastics-processing technologies and industrial fluids, has reached an agreement to sell the company to investors. The agreement with Avenue Capital Group and DDJ Capital Management LLC, who jointly own 78% of the company's 111/2% Senior Notes, is intended to permit Milacron to continue operations with substantially less debt.
Milacron also voluntarily filed for Chapter 11 bankruptcy protection in order to implement the restructuring while continuing global operations. Despite aggressive cost reduction and ongoing capacity rationalization over the past several years, the ongoing credit crisis and deteriorating global economic conditions have severely reduced sales. The filings include Milacron's Canadian and U.S. operations.
"Pursuit of these transactions is a positive step that is in the best interests of the company, our employees, customers, suppliers and other constituents," said Dave Lawrence, president and CEO. "Avenue Capital and DDJ's continued support is indicative of their faith in Milacron's brands, products and people, each helping to create value in the marketplace. This process will allow the business to withstand current economic conditions as part of a new enterprise with a healthy balance sheet."
In addition to a $80 million DIP facility with Avenue Capital and DDJ, Milacron has received a $55 million DIP revolving credit facility from General Electric Capital Corporation, which replaces the company's pre-petition revolver.