Milacron to sell assets for $175 million

U.S.-based plastics processing and industrial fluids company Milacron Inc., which filed for bankruptcy in March, said it has agreed to sell substantially all of its assets to a company formed by its creditors for about US$175 million. Milacron said the creditor groups buying its assets include affiliates of Avenue Capital Group, certain funds and accounts managed by DDJ Capital Management LLC and certain other entities. The group holds about 93% of the company’s 11.5% senior secured notes. The deal is subject to approval by the bankruptcy court, which may solicit other bids for the assets, Milacron said. The company said it will hold an auction on July 17 if at least one other qualified bid is received. The assets will be sold to the qualified bidder submitting the highest and best offer. “The acquisition is part of a comprehensive financial restructuring, intended to permit Milacron to continue as a going concern with substantially less debt,” the company said. (May 5, 2009)