Milacron Inc. is asking U.S. Bankruptcy Judge J. Vincent Aug Jr. to approve its sale to two investor groups that bought the plastics machinery maker's debt at a court hearing scheduled for June 26.
If the judge agreed at a court hearing that was set for June 26 in the Cincinnati court, the stage will be set to sell Milacron to Avenue Capital Group and DDJ Capital Management LLC for $175 million.
Milacron said the company expects to complete the sale within the next month.
Avenue Capital and DDJ Capital hold about 93 percent of Milacron's senior secured notes. They are the preferred, or stalking horse bidders. Milacron had solicited competing bids, with a deadline of June 24.
According to a Milacron news release issued June 25, by the deadline, the company had not received an offer for its assets higher than the $175 million price in the sales agreement offered by Avenue Capital and DDJ Capital, which was signed on May 3.
The stalking horse offer formed the yardstick to evaluate any other bids.
Although substantial interest was expressed, it did not result in the submission of a higher offer by the bid deadline, Milacron said.
It was unclear whether any other firms actually submitted bids. According to court documents, prospective buyers could bid on the entire company or on individual parts.
A Milacron spokeswoman said the company could not immediately say whether Milacron got any other bids.
The proposed deal has some opposition. A committee of unsecured creditors and a group of 14 retired executives have filed objections to the sale.
Dave Lawrence, Milacron's president and CEO, said company officials would have no comment about the motion to approve the sale, but plan to issue a news release after the court ruling is handed down.
In the meantime, I would like to say that we are looking forward to exiting Chapter 11 as a stronger organization with a healthy balance sheet, Lawrence said.
Milacron filed for Chapter 11 on March 10.