Multi-Color Corp. (MCC) won final approval of its $657.5mn debtor-in-possession (DIP) financing facility, but the judge presiding over the case declined to sign off on the final roll-up of prepetition debt under the DIP.

Judge Michael Kaplan of the US Bankruptcy Court for the District of New Jersey said he would defer granting final approval to any roll-up absent a settlement by and among the economic stakeholders in MCC’s case, a confirmed chapter 11 plan or a subsequent consideration by the court. The parties will return to court tomorrow (March 27) to address concerns raised by counsel for the secured ad hoc group providing the DIP funding over Judge Kaplan deferring approval of the roll-up.