Multi-Color Corporation (MCC), a global supplier of prime label solutions to major brand owners, and a significant player in the ANZ market, has received US court approval to continue operating in the normal course following its prepackaged Chapter 11 filing.
Across the global packaging sector, large converters are increasingly revisiting their capital structures as higher interest rates, elevated debt from acquisition-led growth, and ongoing investment demands collide. For many multinational suppliers, financial restructurings are emerging as a way to restore balance sheet flexibility and protect long-term investment capacity, rather than a signal of operational distress.
For MCC, the court approval allows the company to continue operating in the normal course of business throughout the restructuring process, including paying trade vendors and suppliers in full and maintaining employee wages and benefits without interruption.
MCC filed for prepackaged Chapter 11 protection on 29 January 2026 as part of a previously announced financial restructuring aimed at significantly reducing debt and strengthening the company’s capital structure. The company has operations worldwide, including a substantial presence in Australia and New Zealand – where it has 11 sites – supplying labels across food, beverage, wine, spirits and consumer goods markets.
As part of the court’s decision, MCC has been granted immediate access to US$125 million of a US$250 million debtor-in-possession (DIP) financing facility. The funding is being provided by certain holders of MCC’s senior secured, first-lien debt together with its equity sponsor, Clayton, Dubilier & Rice (CD&R).
The DIP financing is intended to support MCC’s operations through the initial stages of the Chapter 11 process and ensure sufficient liquidity while the restructuring is completed.
The court also authorised MCC to continue paying suppliers and trade vendors in the ordinary course of business, meet employee-related obligations, and carry out other critical operational activities required to maintain continuity across its global manufacturing and service network.
MCC has emphasised that the Chapter 11 process is financial in nature and does not reflect any change to its operational performance or customer-facing activities.
The restructuring is being implemented under a previously announced restructuring support agreement backed by holders of approximately 72 per cent of MCC’s secured first-lien debt, along with CD&R. The transaction is expected to reduce MCC’s net debt from approximately US$5.9 billion to around US$2.0 billion.
The agreement also provides for an US$889 million new common and preferred equity investment from CD&R and a group of existing secured lenders to support future growth and investment. Upon emergence from the Chapter 11 process, MCC expects to have more than US$550 million in available liquidity.
For customers and suppliers, MCC’s message is consistent – the restructuring is designed to strengthen the business for the long term, while day-to-day operations continue without disruption.
