Multi Color filed for Chapter 11 on Thursday, stepping into bankruptcy court in New Jersey with a restructuring plan designed to dramatically lighten its debt load and keep its presses running worldwide.
The Georgia-based global maker of retail product labels said the filing comes with an agreement to slash $3.9 billion from its roughly $5.9 billion in total debt — a sweeping reset for a company whose labels wrap products on store shelves across the globe.
Deal With Lenders Clears the Runway
In a statement released Thursday, the company said it struck a deal earlier this week with holders of nearly 75% of its first-lien debt. That agreement backs a restructuring plan and includes $250 million in Chapter 11 financing, which Multi Color said will be enough to sustain operations throughout the bankruptcy process.
The financing is intended to keep factories humming and orders flowing while the company works its way through court, avoiding disruption to customers and suppliers.
A Global Footprint Under Pressure
Headquartered in Atlanta, Multi-Color Corp. operates 90 production facilities spanning 25 countries, according to court filings. The company says it has the largest footprint of any labeling manufacturer in the world, producing labels for a vast range of retail products.
That global reach, once a symbol of scale and strength, now underscores the stakes of the restructuring as the company attempts to steady itself amid heavy debt burdens.
