Milacron sale approved by U.S. Bankruptcy Court
The sale of Milacron Inc. to two investor groups that bought the debt of the machinery maker has been approved by a...
The sale of Milacron Inc. to two investor groups that bought the debt of the machinery maker has been approved by a U.S. Bankruptcy Court.
According to a Milacron news release, all of the company’s assets will be sold to the investors, led by Avenue Capital Group and DDJ Capital Management LLC, in keeping with a previously announced agreement.
The sale is expected to be completed in July.
“There was considerable interest in the company, but in the end, the existing investor group’s offer was the highest,” said Dave Lawrence, Milacron’s president and CEO. “These are investors who understand our company, our customers and the markets that have long relied on Milacron’s products and services. Their continued confidence in our brands, people and products is enabling us to complete the bankruptcy process quickly and emerge as a much healthier company.”
Milacron’s new owners are firms that invest in companies in financial distress. New York-based Avenue Capital focuses on distressed debt and undervalued securities, including companies in bankruptcy, reorganization or liquidation. DDJ Capital, of Waltham, Mass., invests in high-yield securities and special situations.
Milacron filed for Chapter 11 in March in U.S. Bankruptcy Court in Cincinnati.
“Milacron is poised to do well, particularly as world markets improve,” Lawrence said. “The new ownership will enhance our ability to further advance our technologies, to develop new strategic partnerships and to expand our services to customers across the globe. Especially during these challenging economic times, it’s our goal as an industry leader to equip our customers with every possible advantage.”