Milbank successfully represented an ad hoc group of secured first-lien lenders and noteholders (the “Secured Ad Hoc Group”) of Multi-Color Corporation (together with certain of its affiliates, “Multi-Color”) in Multi-Color’s chapter 11 proceedings.
Multi-Color, a leading global manufacturer of product labels, filed for chapter 11 bankruptcy protection on January 29, 2026, with approximately $5.9 billion in pre-petition debt obligations. Leading up to the bankruptcy filing, the Milbank team negotiated a restructuring support agreement (the “RSA”) on behalf of the Secured Ad Hoc Group with Multi-Color and its existing equity sponsor pursuant to which Multi-Color agreed to effectuate a financial restructuring of its capital structure. The RSA also contemplated a $657.5 million debtor-in-possession financing package provided by Multi-Color’s secured creditors and backstopped by the members of the Secured Ad Hoc Group, including a $250 million roll-up of pre-petition secured indebtedness.
Multi-Color’s chapter 11 plan of reorganization (the “Plan”) implements the transactions contemplated by the RSA and a settlement reached with certain unsecured noteholders through a rights offering for $489 million of new preferred equity backstopped by the members of the Secured Ad Hoc Group, the distribution of additional new preferred equity, new common equity, new first lien debt, cash, warrants in exchange for pre-petition funded debt claims and the reinstatement of general unsecured claims. The Plan was confirmed on April 16, 2026, after receiving nearly unanimous support from Multi-Color’s voting stakeholders. The Plan positions Multi-Color for future success by reducing net debt by approximately $3.8 billion, reducing annualized cash interest expense by more than $330 million and extending long-term debt maturities to 2033.
The Milbank team was led by Financial Restructuring co-practice group leader Evan Fleck and partner Matthew Brod. The team also included Financial Restructuring special counsel Justin Cunningham and associates Andrew Somple and Carson White; Alternative Investments partners Al Pisa and Maya Grant, special counsel Omer Hashmi and associates Nathaniel Bachelis, Jennifer Fegley, Simran Ahluwalia, Claudio Rezende, Joseph Ledereich, Simon Goslin, Lauren Giles, Bailey Smith, Kim Ira and Minerva Zang; Leveraged Finance associate Justin Song; Corporate Finance & Securities partner Paul Denaro and associates Michael Pascual and Ian Hunley; Global Corporate/M&A partners Adam Moses and Jason Anderson and associates Jesus Diego, Noah Nance and Martha Schmidt; Litigation & Arbitration practice group leader Alex Lees, special counsel Melanie Yanez and associates Hannah Blazek, Elizabeth Hamilton, Alex She and Elizabeth Fly; and Tax partner Russell Kestenbaum and associate Mendy Fox, among other Milbank attorneys.
