Multi-Color is in post-effective-date wind-down mode: the reorganized debtors are seeking a final decree to close 55 of 56 jointly administered Chapter 11 cases, leaving MCC-Norwood open for residual claims and administrative matters, with a June 29, 2026 hearing on that request in Trenton final decree motionDkt. 965.
The case began on January 29, 2026 as a prepackaged Chapter 11 built around a supported balance-sheet restructuring rather than an operating sale. The debtors entered with a global label platform of more than 90 facilities, roughly 12,800 employees, and about $5.938 billion of funded debt, after revenue fell from $3.56 billion in 2022 to $3.06 billion in 2025 and liquidity tightened following the missed $36.2 million January 2026 interest payment on the 2027 unsecured notes Gabel first-day declarationDkt. 23. The restructuring support agreement targeted roughly $3.9 billion of net debt reduction, $350 million of annual debt-service savings, and $889 million of new capital anchored by CD&R and consenting first lien creditors Gabel first-day declarationDkt. 23.
The path was contested around financing and collateral value. Cross-holder creditors challenged the debtor-sponsored DIP and Barclays’ asserted lien package, arguing that important asset categories were excluded from collateral and that the secured-claim construct understated value available to unsecured creditors adversary complaintDkt. 1. The court ultimately approved a final DIP package of up to $657.5 million, including $250 million of new-money loans, a $250 million roll-up, and up to $150 million of incremental loans, alongside cash-collateral use, adequate protection, and an April 20, 2026 challenge deadline .
The confirmed restructuring implemented a sponsor-backed reorganization rather than a liquidation: the amended plan valued the enterprise at $3.275 billion, provided a $400 million CD&R plan sponsor investment, $489 million of new preferred equity investment, new ABL and term loan debt, impaired recoveries for first lien and junior funded debt, ordinary-course payment of general unsecured claims, and cancellation of existing equity amended prepackaged planDkt. 754. The plan became effective on May 11, 2026, initial distributions have begun, and the remaining near-term case work is administrative: objections to the final-decree motion are due June 22, 2026, with the June 29 hearing to determine whether most affiliate cases can be closed while claims reconciliation and miscellaneous matters continue in the remaining case final decree motionDkt. 965.
