Multi-Color Wins Access to Chapter 11 Loan Over Rival Lenders

Private equity owned Multi-Color Corp. won court approval to start tapping a $250 million Chapter 11 loan, defeating an challenge from rival lenders that floated a competing financing.

Judge Michael Kaplan said Monday he’d authorize Multi-Color to start drawing on its preferred financing, which is supported by a group of senior lenders and equity sponsor Clayton Dubilier & Rice. The label design and printing business sought court protection last week in New Jersey to enact a plan to cut nearly $4 billion in debt.

Kaplan’s ruling gives Multi-Color initial access to $125 million and it will seek permission later ...