The deal is substantially the same as the agreement in principle announced March 10, when the Batavia-based machinery company filed for Chapter 11 protection from creditors.

"This is a significant milestone in our restructuring process," said Dave Lawrence, Milacron's president and chief executive officer, in a news release. "Since we began this reorganization process on March 10, we have experienced a great outpouring of support from across the industry. This, coupled with the faith our investors have in Milacron's brands, products and people, positions us well for sustained long-term success moving forward."

The purchaser would be a company formed by certain affiliates of Avenue Capital Group, certain funds and/or accounts managed by DDJ Capital Management LLC and other entities that together hold approximately 93 percent of the company's senior secured notes.

In return for Milacron's assets, the purchasers will, among other things, repay or assume Milacron's debtor-in-possession loan facilities, assume certain of the company's other liabilities, including ordinary course liabilities and other debt, credit bid US$6.1 million (41.6 million yuan) of pre-petition secured notes and provide additional consideration to noteholders who are not part of the purchasing syndicate.

According to a May 5 news release, the acquisition is part of a comprehensive financial restructuring, intended to permit Milacron to continue as a going concern with substantially less debt.

Under the proposed procedures, if no other qualified bids are received by June 24, Milacron will request Bankruptcy Court approval of the sale on June 26.

If at least one other qualified bid is received, an auction will be held on July 17, and Milacron's assets will be sold to the qualified bidder submitting the highest and best offer, subject to Bankruptcy Court approval.