Milacron signs definitive agreement for $175 million asset sale

By Caroline Salls

Pittsburgh, May 5 - Milacron Inc. has signed a definitive agreement to sell substantially all of its assets for $175 million to a company formed by affiliates of Avenue Capital Group, funds and accounts managed by DDJ Capital Management LLC and holders of about 93% of the company's 11½% senior secured notes, according to a company news release.

Milacron said the definitive agreement is on substantially the same terms as the agreement in principle announced when the company filed for bankruptcy on March 10.

In return for the assets, the buyers will repay or assume Milacron's debtor-in-possession loan facilities, assume some of the company's other liabilities, credit bid $6.1 million of pre-bankruptcy secured notes and provide additional consideration to noteholders who are not part of the purchasing syndicate.

As previously reported, the acquisition is part of a comprehensive financial restructuring intended to permit Milacron to continue as a going concern with substantially less debt.

"This is a significant milestone in our restructuring process," Milacron president and chief executive officer Dave Lawrence said in the release.

"Since we began this reorganization process on March 10, we have experienced a great outpouring of support from across the industry.

"This, coupled with the faith our investors have in Milacron's brands, products and people, positions us well for sustained long-term success moving forward."

The sale is subject to bankruptcy court approval and potential competing bids.

Under the proposed sale procedures, if no other qualified bids are received by June 24, Milacron will request court approval of the sale on June 26.

If at least one other qualified bid is received, an auction will be held on July 17.

Milacron, a Cincinnati-based supplier of plastics-processing technologies and industrial fluids, filed for bankruptcy on March 10 in the U.S. Bankruptcy Court for the Southern District of Ohio. Its Chapter 11 case number is 09-11235.

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