Milacron bid procedures approved for $175 million sale of assets

By Jennifer Lanning Drey

Portland, Ore., May 15 - Milacron Inc. obtained court approval of the bidding procedures for the proposed $175 million sale of substantially all of its assets to a company formed by affiliates of Avenue Capital Group, funds and accounts managed by DDJ Capital Management LLC and holders of about 93% of the company's 11½% senior secured notes, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.

As previously reported, the consideration to be paid for the assets will consist of repayment and/or assumption of the company's $135 million of debtor-in-possession loans, assumption of some ordinary course liabilities and additional consideration to senior secured noteholders that do not participate in the restructuring as sponsors.

Competing bids will be due by 5 p.m. ET on June 24. All bids must include a 10% deposit.

If one or more qualified bids are received, an auction will be held July 17.

Initial overbids must include a $426,000 additional amount, a $5.4 million initial overbid amount and the amount of the bid protections to be paid if the noteholders' entity is not the high bidder.

The bid protections include a $4.05 million break-up fee and reimbursement of up to $2 million of sale-related expenses.

Bids at auction must be made in minimum increments of $1 million.

Milacron, a Cincinnati-based supplier of plastics-processing technologies and industrial fluids, filed for bankruptcy on March 10. Its Chapter 11 case number is 09-11235.

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