Milacron creditors committee, retirees ask court to reconsider sale

By Jennifer Lanning Drey

Portland, Ore., July 8 - Milacron Inc.'s official committee of unsecured creditors and certain company retirees asked the U.S. Bankruptcy Court for the Southern District of Ohio to reconsider its approval of the $175 million sale of substantially all of Milacron's assets to a group of existing investors, according to a Wednesday filing.

The committee and the retirees said the bankruptcy code does not allow for approval of such a sale unless there is fair and reasonable accommodation for unsecured creditors.

The creditors said there is no such accommodation in the proposed sale.

Additionally, they noted that their objections were not based on the belief that the sale price was insufficient, although they do think the value of Milacron's assets substantially exceeds the purchase price of $175 million, as well as the $280 million owed to Milacron's unsecured creditors.

As previously reported, prior to the sale hearing, Milacron's creditor's committee proposed an alternative structure it said would permit the estate and unsecured creditors to share in the value of Milacron's assets in excess of what is owed to the secured creditors if greater value is realized in the near future.

However, the stalking horse, Milacron's debtor-in-possession term loan lenders and the senior secured noteholders rejected the committee's proposal and refused to participate in discussions regarding a fair and reasonable accommodation for unsecured creditors, they said.

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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