Multi-Color Corporation (MCC) gets the green light from the U.S. courts for its reorganization plan. The New Jersey Bankruptcy Court has validated the procedure initiated by the label giant, which plans to emerge from Chapter 11 in the coming weeks. Based in Atlanta, the American group, which operates 58 sites worldwide, including seven in France, is thus embarking on a major financial restructuring.
The operation reduces net debt to around $3.8 billion from the current $5.9 billion, and cuts annual interest expenses by more than $330 million for the group, which employs 13,000 people and has sales of $3 billion. Debt maturities are extended to 2033. Service providers and suppliers will be paid in full. The plan also includes an investment of $889 million from Clayton, Dubilier & Rice and several existing creditors. No headcount reductions have been announced at this stage. At the end of the restructuring, MCC expects to have more than $500 million in cash.
MCC CEO Hassan Rmaile says that this validation "marks the near-finalization of the financial restructuring process". "Thanks to the support of our financial partners, MCC will have a significantly leaner balance sheet and sufficient liquidity to support our future activities, invest in innovation and continue to provide high-quality label solutions."
The judicial validation comes after a global agreement between the various stakeholders. More than 99% of the creditors who voted approved the plan. This agreement follows a restructuring support package put in place before the opening of the pre-packaged Chapter 11 proceedings (previously negotiated with its main creditors) at the end of January 2026 .
The manufacturer now expects to finalize the capital contributions and close all transactions in the coming weeks.
