| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Milacron Inc. > News item |
Milacron committee and retirees' sale reconsideration request denied
By Caroline Salls
Pittsburgh, July 27 - A federal judge has denied a request by Milacron Inc.'s official committee of unsecured creditors and some of the company's retirees to reconsider the court's approval of the $175 million sale of substantially all of Milacron's assets to a group of existing investors, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.
The committee and the retirees said the bankruptcy code does not allow for approval of such a sale unless there is fair and reasonable accommodation for unsecured creditors.
The creditors said there is no such accommodation in the proposed sale.
Judge J. Vincent Aug Jr. said the committee and retirees candidly acknowledged that some unsecured creditors will benefit from the asset purchase agreement.
In addition, Aug said the committee and retirees have "failed to show clear error or manifest injustice" in the sale order.
As previously reported, before the sale hearing, Milacron's creditor's committee proposed an alternative structure it said would permit the estate and unsecured creditors to share in the value of Milacron's assets in excess of what is owed to the secured creditors if greater value is realized in the near future.
However, the stalking horse, Milacron's debtor-in-possession term loan lenders and the senior secured noteholders rejected the committee's proposal and refused to participate in discussions regarding a fair and reasonable accommodation for unsecured creditors, the committee and retirees said.
Milacron, a Cincinnati-based supplier of plastics-processing technologies and industrial fluids, filed for bankruptcy on March 10. Its Chapter 11 case number is 09-11235.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.