Company Expects to Emerge from Prepackaged Chapter 11 in Coming Weeks With Significantly Deleveraged Balance Sheet Including Approximately $3.8 Billion Reduction in Outstanding Funded Debt
Significant New Money Investment Will Establish Strong Liquidity Position to Support Long-Term Growth and Investment
(BUSINESS WIRE)--Multi-Color Corporation (“MCC” or the “Company”), a global leader in prime label solutions, today announced that the United States Bankruptcy Court for the District of New Jersey (the “Court”) has confirmed the Company’s prepackaged plan of reorganization (the “Plan”). MCC expects to emerge from prepackaged Chapter 11 in the coming weeks.
Under the terms of the Plan, MCC will complete a comprehensive restructuring transaction that significantly deleverages the Company’s balance sheet and recapitalizes the business. The restructuring reduces net debt by approximately $3.8 billion, reduces annualized cash interest expense by more than $330 million, and extends long‑term debt maturities to 2033. In addition, MCC will receive a significant $889 million investment from CD&R and a group of MCC’s existing secured lenders. Post-emergence, the Company expects to have more than $500 million of available liquidity to support long-term growth and investment.
“Today’s confirmation marks the near-completion of our financial restructuring process, positioning MCC to emerge as an even more resilient company,” said Hassan Rmaile, President & Chief Executive Officer of MCC. “With the support of our financial stakeholders, MCC will emerge with a significantly deleveraged balance sheet and liquidity available to support our go-forward operations, invest in innovation, and continue delivering the high-quality label solutions that our customers depend on. I am grateful to our teammates, customers, and suppliers for their steadfast commitment and support throughout this process, and we look forward to the opportunities ahead.”
Plan confirmation follows a successful mediation and global settlement among every major constituency in MCC’s prepackaged Chapter 11 cases, with more than 99% of voting stakeholders accepting MCC’s prepackaged Chapter 11 plan. This global settlement is in addition to the support previously obtained through the restructuring support agreement entered into prior to the commencement of MCC’s prepackaged Chapter 11 cases in January 2026.
With court approval in hand, MCC expects to receive the proceeds from the significant new common and preferred equity investment and complete its financial restructuring in the coming weeks.
For more information on MCC’s restructuring, including access to Court documents, please visit www.veritaglobal.net/MCC. Stakeholders with questions can contact Verita, the Company’s claims and noticing agent, at (866) 967-1788 (U.S./Canada toll free) or +1 (310) 751-2688 (International) or submit an inquiry to www.veritaglobal.net/MCC/inquiry. Additional information is also available at MCCForward.com.
Advisors
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Evercore Group LLC is serving as investment banker, AlixPartners LLP is serving as financial advisor, Quinn Emanuel Urquhart & Sullivan LLP is serving as special counsel to the Special Committee of LABL, Inc.’s Board of Directors, and FGS Global is serving as strategic communications advisor to the Company. Debevoise & Plimpton LLP and Latham & Watkins LLP are serving as legal counsel to CD&R and Moelis & Company LLC is serving as its financial advisor. Milbank LLP and PJT Partners serve as legal counsel and financial advisor, respectively, to the ad hoc group of secured creditors.
About MCC
Multi-Color Corporation (MCC) is a global leader in prime label solutions, providing innovative and sustainable solutions to some of the world’s most recognizable brands across a broad range of consumer-oriented end categories. MCC is committed to delivering the world’s best label solutions for their customers to build their brands and add value to the communities in which they operate.
Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of MCC and its subsidiaries and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as “anticipate”, “target”, “expect”, “enable”, “estimate”, “intend”, “plan”, “goal”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”, “could”, or other words of similar meaning. These statements are based on assumptions and assessments made by the Company and its perception of historical trends, current conditions, future developments and other factors. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. The Company does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as may be required by applicable law. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements.
Among the factors that could cause actual results to differ materially from those described in the forward‑looking statements are changes in the global, political, economic, business, competitive, market, supply chain, and regulatory forces, future exchange and interest rates, changes in tax rates and any future business combinations or dispositions, uncertainties and costs related to the RSA and the Chapter 11 process, including, among others, potential adverse effects of the Chapter 11 process on the Company’s liquidity and results of operations, including with respect to its relationships with its customers, distribution partners, suppliers, and other third parties; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties inherent in the Chapter 11 process; the impact of any cost reduction initiatives; any other legal or regulatory proceedings; the Company’s ability to obtain operating capital, including complying with the restrictions imposed by the terms and conditions of any debtor-in-possession financing, such as the financing mentioned herein; the length of time that the Company will operate under Chapter 11 protection; the timing of any emergence from the Chapter 11 process; and the risk that any plan of reorganization resulting therefrom may not be implemented at all. Please see the Joint Prepackaged Plan of Reorganization of MultiColor Corporation and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 17] and the Disclosure Statement Relating to the Joint Prepackaged Plan of Reorganization of MultiColor Corporation and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 18], (each as may be amended, modified or supplemented) for additional considerations and risk factors associated with the company’s Chapter 11 process. Nothing in this press release is intended as a profit forecast or estimate for any period and no statement in this press release should be interpreted to mean that the financial performance for the Company for the current or future financial years would necessarily match or exceed its historical results. Further, this press release is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.
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Contacts
MEDIA CONTACT
FGS Global for MCC
mcclabel@fgsglobal.com
