FAQ
General
As a reminder, on January 27 we announced that we entered into a Restructuring Support Agreement (“RSA”) supported by holders of approximately 72% in amount of MCC's secured first lien debt and our majority owner, CD&R.
This transaction will significantly deleverage MCC's balance sheet, reducing its net debt load from approximately $5.9 billion to approximately $2.0 billion. The RSA also contemplates that CD&R and a group of MCC's existing secured lenders will provide an $889 million new common and preferred equity investment that will support long-term growth and investment.
Upon emergence, MCC will have more than $550 million of liquidity.
This new investment and reduction in debt will provide additional financial flexibility to support ongoing operational improvements and future growth initiatives.
To implement the RSA, MCC and certain of its subsidiaries and affiliates commenced a prepackaged Chapter 11 filing on January 29.
A prepackaged filing means we have sufficient lender support to proceed through Chapter 11 on an expedited timeline.
The Court approved the Company's proposed prepackaged Chapter 11 timeline, and the Court will consider confirmation of the Company's plan of reorganization on March 31. We will be working as expeditiously as possible to successfully emerge from this process.
MCC has taken strategic and proactive action to improve our capital structure and to best position MCC for long-term success.
This restrucutring support agreement, which reflects a strong vote of confidence by MCC's majority owner and lenders, further positions the Company for long-term growth and to best serve its customers.
On January 29, the Company announced that MCC and certain of its subsidiaries and affiliates commenced a prepackaged Chapter 11 filing.
The term "prepackaged" means that we have already finalized the terms of a financial restructuring and a long-term business plan - both of which have been documented in the Plan of Reorganization, which has the necessary lender support for Plan confirmation and was filed with the Court.
Chapter 11 refers to a section of the U.S. Bankruptcy Code that governs court-supervised reorganizations of businesses. It is a tool commonly used by companies with global operations to rehabilitate their balance sheets in an orderly manner while allowing the company’s management to remain in control of the business to ensure that it may continue day-to-day operations in the ordinary course.
Importantly, companies that utilize prepackaged Chapter 11 continue normal business operations. Prepackaged Chapter 11 process provides the company with breathing room – and protection from its creditors and debt holders – so that it can confirm a plan of reorganization that reorganizes its debt and positions itself for the future.
Prepackaged Chapter 11 does not mean that MCC is going out of business.
The Court approved the Company's proposed prepackaged Chapter 11 timeline, and the Court will consider confirmation of the Company's plan of reorganization on March 31.
We will be working as expeditiously as possible to successfully emerge from this process.
Employees
For everyone at MCC, our work continues as usual, with the same focus on continuing to meet customer expectations and delivering market-leading labeling solutions as we work to achieve our 2026 priorities.
MCC's global operations will continue in the normal course throughout the prepackaged Chapter 11 process.
Your role remains the same and you should keep focused on your day-to-day business as you normally do. Wages and benefits will continue as normal, and we will continue to meet all our obligations to you as valued members of our team.
Our commitment to our customers and partners also remains unchanged.
Wages and benefits will continue as normal.
We will continue to meet all our obligations to you as valued members of our team. This includes all existing insurance, retirement, and vacation benefits.
Customers
This process will not impact our relationship or our ability to provide the services you expect from us.
MCC’s global operations will continue as usual throughout the prepackaged Chapter 11 process.
Our teams are committed to maintaining seamless delivery of our products and services, and, in fact, we expect these actions will make us an even stronger and more innovative partner to you going forward.
Yes. Your primary contact at MCC will remain unchanged, and we are available to answer any questions you may have.
MCC’s global operations will continue as usual throughout the prepackaged Chapter 11 process.
There is no impact to our customers, and we remain fully focused on delivering the service, quality, and partnership you expect from us.
Additional information regarding MCC's prepackaged Chapter 11 cases, including court documents and claim information, can be found by visiting MCC's claims agent, Verita, at www.veritaglobal.net/MCC, by calling (866) 967-1788 (toll free U.S.) / +1 (310) 751-2688 (International) or submitting an inquiry to www.veritaglobal.net/MCC/inquiry.
Vendors/Suppliers/Landlords
MCC’s global operations will continue in the normal course throughout the prepackaged Chapter 11 process, and trade vendors and suppliers will be paid in full in the ordinary course.
On February 2, MCC announced that it has received approval from the U.S. Bankruptcy Court for the District of New Jersey of "first day" motions related to its prepackaged Chapter 11 petition filed on January 29.
The approval affirms that the Company will operate in the normal course, pay all trade vendors and suppliers in full, and maintain a strong liquidity position during the financial restructuring.
As part of these motions, the Court granted MCC immediate access to $125 million of $250 million of DIP new money financing to capitalize the business through the initial stages of the prepackaged Chapter 11 process.
MCC expects to obtain approval to access the remaining $125 million of DIP financing upon the Court's entry of a final order in March.
Yes. Your primary contact at MCC remains unchanged, and we are available to answer any questions you may have.
Additional information regarding MCC's prepackaged Chapter 11 cases, including court documents and claim information, can be found by visiting MCC's claims agent, Verita, at www.veritaglobal.net/MCC, by calling (866) 967-1788 (toll free U.S.) / +1 (310) 751-2688 (International) or submitting an inquiry to www.veritaglobal.net/MCC/inquiry.
No. MCC’s global operations will continue in the normal course throughout the prepackaged Chapter 11 process.
A “proof of claim” is a process and/or form used by creditors to submit their claim for pre-petition payment to the Court.
Once filed, pre-petition claims will need to be submitted for payment in accordance with a process that will be established and communicated to suppliers at a later date.
Please visit our claims agent website www.veritaglobal.net/MCC where you can find additional information about MCC restructuring, including access to Court documents.