Multi-Color Corporation and 55-plus affiliates remain in the confirmation phase of a prepackaged Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey (Case No. 26-10910; Judge Michael B. Kaplan), with a fully approved postpetition financing facility in place, an amended plan on the docket, and a contested lien-scope dispute still running alongside the plan. No confirmation order has entered. The next scheduled matter is a July 20, 2026 hearing on the final fee applications of the Debtors' professionals and the Official Committee of Unsecured Creditors' professionals.
The Debtors — a CD&R-backed global prime label manufacturer with more than 90 facilities across 25-plus countries and roughly 12,800 employees — filed their voluntary petitionsDkt. 1 on January 29, 2026 to implement a prepackaged restructuring. According to the first-day declaration of Chief Restructuring Officer Garrett GabelDkt. 23, the filing was precipitated by a roughly 14% revenue decline from 2022 to 2025 driven by raw-material inflation, labor constraints, and sustained customer destocking, compounded by long 12-to-24-month customer onboarding cycles. The immediate trigger was the Debtors' decision not to pay a $36.2 million interest coupon on their 10.50% 2027 Unsecured Notes due January 15, 2026, which would have triggered cross-defaults across the ABL and cash flow credit agreements against an anticipated end-of-January liquidity shortfall.
The case targets a $3.9 billion net debt reduction out of approximately $5.938 billion in total funded debt, anchored by a Restructuring Support Agreement with roughly 72.3% of first lien secured lenders and sponsor CD&R. The sets a $3.275 billion total enterprise value and a $625 million plan equity value, funded by $400 million in Plan Sponsor equity from CD&R (for a 64% new common stake) and $489 million in new preferred equity. First Lien Secured Claims take new debt, preferred equity rights, 13.3% of new common equity, and Series A warrants; Junior Funded Debt receives cash, 5.0% of new common equity, new debt, and Series B warrants; General Unsecured Claims are paid in full in the ordinary course.
Liquidity through confirmation rests on a $657.5 million DIP facility — $250 million of new money with a $250 million roll-upDkt. 585 authorized under a final order entered March 27, 2026, which granted priming section 364(d) liens and adequate protection to prepetition secured parties. The priming, roll-up, and backstop terms drew objections from a Cross-Holder Ad Hoc Group and the creditors' committee, which the Secured Ad Hoc Group answeredDkt. 461 on the ground that the facility is the only actionable financing and is integral to the consensual plan. Separately, holders of the 2027 and 2029 unsecured notes launched a declaratory judgment action challenging the scope of the first-lien collateralDkt. 1 against Barclays as collateral agent, contending that foreign subsidiary equity, real property, and leased assets are excluded from the security agreements and that the estate holds material unencumbered value. That dispute bears directly on the $1.9519 billion secured claim and the $1.992 billion unsecured deficiency claimed in the plan.
