Multi-Color Corporation (MCC), a prominent provider of label solutions, has filed for Chapter 11 bankruptcy as part of a strategic restructuring effort. The filing took place on January 29, 2026, at the U.S. Bankruptcy Court for the District of New Jersey. This pre-packaged bankruptcy aims to significantly reduce the company’s debt load and strengthen its financial standing.
As part of this process, MCC has entered into a restructuring support agreement with major secured lenders, representing approximately 72% of its secured first-lien debt. This agreement, in partnership with its equity sponsor, Clayton, Dubilier and Rice (CD&R), is designed to facilitate a comprehensive financial restructuring and is expected to lower the company’s net debt from about $5.9 billion to $2.0 billion.
MCC’s filing indicates that the company seeks to expedite its first-day motions, which include requests for debtor-in-possession financing and permission to consolidate the approval processes for its disclosure statement and plan confirmation. The initial hearings for these requests are scheduled for January 30, 2026. Following this, multiple short-term deadlines will be imposed, with objections to specific applications due by February 6, 2026.
Details of the Restructuring Process
The restructuring aims to decrease annual cash interest expenses from around $475 million to approximately $140 million in 2026. Furthermore, the plan includes extending the company’s long-term debt maturities to 2033. As part of the reorganization, MCC anticipates raising up to $889 million in new common and preferred equity to support future growth and investments.
Management has expressed confidence that the restructuring will enhance MCC’s capital structure and operational efficiency, allowing the company to invest further in product development and customer-oriented solutions. After emerging from Chapter 11, MCC expects to maintain more than $500 million in available liquidity.
Background on Multi-Color Corporation
Founded in 1916, Multi-Color Corporation has grown into a global leader in label and packaging solutions, catering to a diverse range of industries, including food and beverage, healthcare, and personal care. With a manufacturing presence in North America, Europe, Latin America, Asia, and Australia, MCC provides both localized production and standardized quality for its multinational and regional clients.
The company is involved not only in manufacturing but also in label design, material selection, and printing technologies, reinforcing its commitment to operational efficiency and long-term customer relationships.
Current Case Status and Legal Representation
The Chapter 11 case is being overseen by Judge Michael B. Kaplan, with legal representation from attorney Michael D. Sirota of Cole Schotz P.C. Additionally, Kirkland & Ellis LLP and Cole Schotz P.C. are providing legal counsel, while Evercore serves as the investment banker for the company. MCC is currently managing over 100,000 creditors, and has reported funds available for unsecured creditors.
The case has been classified as a complex Chapter 11 proceeding involving multiple affiliated entities, all of which are being jointly administered. This restructuring aims to ensure MCC’s long-term sustainability and enhance its financial health, allowing the company to navigate the challenges of the current market effectively.
By focusing on revitalizing its financial structure rather than liquidation, Multi-Color Corporation is positioning itself to emerge stronger and better equipped for future growth.
