Judge Defers Ruling on Multi-Color Chapter 11 Loan ‘Roll-Up’

A federal judge allowed label-maker Multi-Color Corp. to draw the remainder of its $250 million Chapter 11 debtor-in-possession loan but refused to approve a contested provision that would have elevated some existing debt to the top of the repayment line. The decision preserves the company's access to $250M of financing while leaving a key priority dispute unresolved, which could materially affect creditor recoveries and the final restructuring outcome.

Analysis

A federal judge allowed label-maker Multi-Color Corp. to draw the remainder of its $250 million Chapter 11 debtor-in-possession loan but refused to approve a contested provision that would have elevated some existing debt to the top of the repayment line. The decision preserves the company's access to $250M of financing while leaving a key priority dispute unresolved, which could materially affect creditor recoveries and the final restructuring outcome.