Multi-Color Creditors Lose Third Circuit Bid to Move Bankruptcy

A group of Multi-Color Corp. creditors lost their Third Circuit request to immediately dismiss the printing company’s Chapter 11 case or transfer it from New Jersey to another venue.

The minority creditor group challenged Multi-Color’s venue choice when it filed for Chapter 11 in January in the New Jersey bankruptcy court. The creditors said the company’s connection to that state is based on two bank accounts created by a subsidiary called MCC-Norwood LLC.

The US Court of Appeals for the Third Circuit rejected the creditors’ mandamus petition in a Tuesday order. The order offered no details on the court’s reasoning. ...