(Information sent by the signing company)
TORONTO, Dec. 21, 2022 /PRNewswire/ — To facilitate the ongoing process of selling its business, DCL Corporation (DCL or the Company), a leading manufacturer and distributor of color pigments, today announced that, as of December 20, 2022, its United States-based affiliate has filed a voluntary petition for court-supervised reorganization under Chapter 11 of the Bankruptcy Code (Chapter 11) with the United States Bankruptcy Court for the District of Delaware. At the same time, the Company and its Canadian subsidiaries have also commenced restructuring proceedings in Canada under court supervision pursuant to the Company Creditors Regulatory Act, RSC 1985, c. C-36, in its modified version (CCAA).
As part of this filing, DCL has entered into an Asset Purchase Agreement (APA), under which DCL will sell substantially all of the company’s assets in the process of sale pursuant to Section 363 of the United States Bankruptcy Code. The agreement is subject to court approval and any higher or better bids are accepted according to the proposed bidding procedure as part of the sales process.
DCL’s international affiliates in the UK and the Netherlands are not included in the Chapter 11 or CCAA process.
To support the restructuring process, DCL’s current lender, Wells Fargo, has agreed to provide up to $55 million in debtor-owned financing. Following court approval, the company expects this financing, together with cash flow from operations, will support the company’s normal operations throughout the court-supervised process. The company continues to serve customers and end users in the United States, Canada and around the world.
Scott Davido, Corporate Restructuring Director, said: “We are delighted to have entered into this asset purchase agreement and to have ongoing support from our lenders as we complete this process. The US and Canadian restructuring process will facilitate our sales process, resolve our liquidity issues, strengthen our balance sheet and better position DCL in the future. In addition, we thank all DCL employees for their dedication and tireless efforts during these difficult times.”
DCL filed an ordinary first-day motion in court which, once approved, will allow the Company to carry on its normal business under Chapter 11 and the CCAA, including, but not limited to, granting authority to pay employee salaries and benefits and honoring commitments to customers in business activities. normal business. The Company will also pay all providers under normal circumstances for all goods and services provided on or after the Chapter 11 filing date.
To assist with the company’s restructuring, Ankura Consulting Group (Ankura) Scott Davido has been appointed Director of Restructuring for DCL, with Ankura Consulting Group acting as the company’s financial advisor. The firm is represented by King & Spalding LLP and Blake, Cassels & Graydon LLP as legal counsel. TM Capital Corp is an enterprise investment bank.
For more information at https://cases.ra.kroll.com/DCL, contact DCL’s claims agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (toll-free for US/Canada) or +1 (646) 440 -4160 (International), or via email DCLInfo@ra.kroll.com.
About DCL
DCL Corporation is a manufacturer and supplier of pigments to our customers in the coatings, plastics, printing inks and paper industries worldwide. Our range of pigments is backed by our technical expertise, our commitment to service excellence, continuous improvement, and environmental, health, safety and social responsibility. Visit www.pigments.com for more information on our product range.
About Angura
Ankura Consulting Group, LLC is an independent global expert advisory and services firm providing comprehensive services and solutions to assist clients at critical inflection points related to conflict, crisis, performance, risk, strategy and transformation. The Ankura team consists of more than 1,800 professionals serving more than 3,000 clients in 55 countries and are leaders in their respective fields and areas of expertise. Collaborative lateral thinking, hard-earned experience, specialized knowledge and multidisciplinary skills drive results and Ankura is unmatched in its ability to help clients Protect, Create and Restore Value. For more information, visit ankura.com.
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