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TORONTO, Dec. 21, 2022 /PRNewswire/ -- To facilitate the ongoing process of selling its businesses, DCL Corporation (DCL or the Company), a leading manufacturer and distributor of color pigments, today announced that the On December 20, 2022, its United States-based affiliates have filed voluntary petitions 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 under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, in its modified version (CCAA).
As part of these filings, DCL has entered into an Asset Purchase Agreement (APA), pursuant to which DCL will sell substantially all of the company's assets in a sale proceeding pursuant to Section 363 of the United States Bankruptcy Code. The deal is subject to court approval and any higher or better offers received pursuant to proposed bidding procedures as part of the sale process.
DCL's international affiliates in the UK and the Netherlands are not included in the Chapter 11 or CCAA proceedings.
In support of the restructuring process, DCL's current lender, Wells Fargo, has agreed to provide up to $55 million in debtor-in-possession financing. Upon court approval, the company expects that this financing, along with cash flow from operations, will support the normal operations of the company during the court-supervised process. The company continues to serve customers and end users in the United States, Canada and the rest of the world.
Scott Davido, Director of Restructuring for the company, said: "We are pleased to sign this asset purchase agreement and have the continued support of our lenders as we complete this process. The US and Canadian restructuring proceedings will facilitate our sale process, they will solve our liquidity problems, strengthen our balance sheet and better position DCL for the future. In addition, we thank all DCL employees for their continued dedication and tireless efforts, during these difficult times."
DCL is filing the usual first day motions with the courts which, once approved, will allow the Company to operate its business in the normal course under Chapter 11 and CCAA, including, but not limited to, granting authority to pay wages and employee benefits and honor commitments to customers in the ordinary course of business. The company will also pay all providers in the ordinary course of all goods and services rendered on or after the Chapter 11 filing date.
To assist in the company's restructuring, Scott Davido of Ankura Consulting Group (Ankura) has been appointed Director of Restructuring for DCL, with Ankura Consulting Group acting as financial advisor to the company. The company is represented by King
More information at https://cases.ra.kroll.com/DCL, by calling DCL's claims agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (toll free for USA/Canada) or 1 (646) 440 -4160 (International), or by 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 around the world. Our wide 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 range of products.
About Ankura
Ankura Consulting Group, LLC is an independent global expert services and advisory 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 is made up of more than 1,800 professionals who serve 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 capabilities drive results and Ankura is unrivaled in its ability to help clients Protect, Create and Recover Value. For more information, visit ankura.com.
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