DCL Corporation Begins US and Canadian Restructuring Processes…

DCL Corporation

TORONTO, Oct. 1 /PRNewswire/

DCL Corporation (or the Company, DCL), a leading manufacturer and reseller of color pigments, today announced that on December 20, 2022, its US-based subsidiaries filed a debtor’s petition for court-supervised reorganization under Chapter 11 bankruptcy. The Code of the United States Bankruptcy Court for the District of Delaware (Bankruptcy Code) simplifies the ongoing sale process. At the same time, the Company and its Canadian subsidiaries entered into court-supervised reorganization proceedings in Canada under the Companies’ Creditors Arrangement Act, RSC 1985, c. C-36, as amended (CCAA).

As part of these filings, TCL entered into a Stalking Horse Asset Purchase Agreement under which TCL will sell substantially all of the Company’s assets in a sale pursuant to Section 363 of the US Bankruptcy Code. This agreement is subject to court approval and the highest or best bids received in accordance with the bidding procedures proposed as part of the sale process.

DCL’s international subsidiaries in the United Kingdom and the Netherlands are not included in the Chapter 11 or CCAA proceedings.

DCL’s current lender, Wells Fargo, has agreed to provide up to $55 million in bank loans to support the restructuring process. After the Court’s approval, the Company expects that this financing, along with cash flow from operations, will support the business in its normal operations during the Court’s supervision. The company continues to serve customers and end users in the United States, Canada and around the world.

Scott Davido, the company’s chief restructuring officer, said, “We are pleased to close this asset purchase agreement and have the continued support of our lenders as we complete this process. The restructuring process in the US and Canada will support our sales process, address our liquidity challenges, strengthen our balance sheet and better position DCL for the future. Additionally, we would like to thank all DCL employees for their continued dedication and tireless efforts during these difficult times.”

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DCL files standard first-day motions in the courts that, if approved, would allow the company to conduct its business in the ordinary course under Chapter 11 and the CCAA, including, among other things, the authority and enforcement to issue employee wages and benefits. Customer obligations in the ordinary course of business. The Company will pay all vendors at normal rates for any goods and services provided on or after the date of the Chapter 11 filing.

In support of the company’s restructuring, Scott Davido of Ankura Consulting Group (Ankura) has been appointed as DCL’s Chief Restructuring Officer and Ankura Consulting Group is acting as the company’s financial advisor. The company is represented by King & Spalding LLP and Blake, Cassells & Graydon LLP as legal counsel. Investment banker at TM Capital Corp.

For more information, see https://cases.ra.kroll.com/DCLBy calling Kroll Restructuring Administration LLC, DCL’s claims agent, at (888) 510-7189 (US/Canada toll free) or +1 (646) 440-4160 (International) or by email at [email protected]. Send to kroll.com.

Information about DCL

DCL Corporation is a global manufacturer and supplier of pigments to our customers in the global coatings, plastics, inks and paper industries. Our wide range of pigments is backed by technical expertise, our commitment to service excellence, continuous improvement, environmental, health, safety and social responsibility. Visit www.pigments.comFor more information on our product range.

Information about Angura

Ankura Consulting Group, LLC, is an independent global professional services firm providing services and holistic solutions to assist clients at critical inflection points related to conflict, crisis, performance, risk, strategy and change. Ankura Group has more than 1,800 professionals who are leaders in their respective fields and areas of expertise serving more than 3,000 clients in 55 countries. Collaborative thinking, hard-won experience, expert knowledge and diverse capabilities drive results and are unmatched in Ankura’s ability to help clients protect, create and recover value. For more information, see ankura.com.

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Press Contact:

Scott Davido, [email protected]

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