DCL has begun restructuring in the United States and Canada to make it easier to sell the business

(Information sent by the signatory company)

TORONTO, Dec. 21, 2022 /PRNewswire/ — To facilitate the ongoing sale of its business, DCL Corporation (DCL or the Company), a leading manufacturer and distributor of color pigments, today announced that on December 20th, 2022, its U.S.-based subsidiaries have filed Voluntary petitions for court-supervised reorganization under Chapter 11 Bankruptcy Code (Chapter 11) with the US Bankruptcy Court for the District of Delaware. At the same time, the Company and its Canadian subsidiaries also commenced court-supervised restructuring proceedings in Canada under the Corporate Creditors Arrangement Act, RSC 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 agreement is subject to court approval and any higher or better offers received in accordance with the bidding procedures proposed as part of the sale.

UK and Netherlands DCL international corporations are not included in Chapter 11 or CCAA proceedings.

In support of the restructuring, DCL’s current lender, Wells Fargo, has agreed to provide up to $55 million in debtor possession financing. Subject to 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 operation. The company continues to serve customers and end users in the United States, Canada and the rest of the world.

“We are pleased to sign this asset purchase agreement and have the continued support of our lenders as we complete this process,” said Scott Davido, the company’s director of restructuring. “The US and Canadian restructuring actions will ease our sale process, resolve our liquidity issues, strengthen our balance sheet and improve setting DCL for the future.In addition, we thank all DCL employees for their continued dedication and tireless efforts during these challenging times.”

DCL files standard first-day motions with the courts that, once approved, will allow the company to operate its business in the normal course under Chapter 11 and the CCAA, including, but not limited to, granting authority to pay wages and employee benefits and honor obligations to customers in the course of business usual. The Company will also pay all providers of services in the ordinary course for all goods and services provided 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 serving 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 the company’s investment bank.

More information at https://cases.ra.kroll.com/DCL, by contacting DCL Claims Agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (toll-free for USA/Canada) or +1 ( 646) 440-4160 (international), or via email at DCLInfo@ra.kroll.com.

About DCL

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

About Ancora

Ankura Consulting Group, LLC is a global independent advisory services and advisory firm providing comprehensive services and solutions to assist clients in critical flashpoints related to conflict, crisis, performance, risk, strategy and transformation. Ankura’s team of more than 1,800 professionals 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 expertise, specialized knowledge, and multidisciplinary capabilities drive results, and Ankura is unparalleled in its ability to help clients protect, create, and recover value. For more information, visit ankura.com.

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DCL has begun restructuring in the United States and Canada to make it easier to sell the business

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