Chapter 11 for Milacron
Milacron Inc announced that they have filed for voluntary Chapter 11 protection to make the sale to a group of investors possible. Chapter 11, which is only applicable in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />North America, gives the board of directors time and a controlled setting to restructure the balance sheet of the company. During this process Milacron will be protected against the claims of creditors. The productive activities will go on uninterrupted under the supervision of the current board of directors and CEO Dave Lawrence, appointed last November. The two investors Avenue Capital Group and DDJ Capital Management LLC will provide the company with 40 million dollar of fresh liquidity and will purchase substantially all its assets in a second step. Milacron will therefore continue to operate with less debt. General Electric Capital Corporation have demonstrated their confidence in this operation granting a 55-million dollar “revolving” credit. Chapter 11 is strictly limited to Milacron in the US and Canada whilst it does not affect Milacron BV Netherlands, the holding that owns all European business. The European companies of the group, including Uniloy Milacron Srl in Italy and Uniloy Milacron GmbH in Germany will go on to operate as independent legal entities with their own separate cash management and they will continue their activities with no interruption and will honour their obligations and dues.
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