subject : bankruptcy
TorontoAnd the December 22, 2022 /PRNewswire/ — To facilitate the process of selling its ongoing business, DCL Corporation (DCL or the Company), a leading manufacturer and marketer of color pigments, today announced that effective December 20, 2022, the rules for its U.S. subsidiaries to file voluntary petitions for restructuring under Court supervision under Chapter 11 Bankruptcy Code (Chapter 11) in the United States Bankruptcy Court for the County of Delaware. At the same time, the company and its Canadian subsidiaries have also initiated court-supervised restructuring proceedings in Canada Under the Corporate Creditors Arrangement Act, RSC 1985, c. C-36, as amended (CCAA).
In connection with these filings, DCL has entered into an asset purchase agreement with the front bidder, pursuant to which DCL will sell substantially all of the Company’s assets in the sale pursuant to Section 363 of the United States Bankruptcy Code. The agreement is subject to approval by the court and receipt of any superior or better offer pursuant to the bidding procedures presented in the sale.
DCL’s international affiliates in the United Kingdom and the Netherlands are not affected by Chapter 11 or CCAA proceedings.
To support the restructuring, DCL’s current lender, Wells Fargo, has agreed to provide up to $55 million in debtor debt financing. Subject to court approval, the company expects this financing, along with cash flow from operations, to support the business in its normal operations during the court-supervised operation. The Company continues to serve its customers and end users in the United States, Canada And around the world.
Scott DavidoThe head of corporate restructuring said: We are delighted to have entered into this asset purchase agreement and to have the continued support of our lenders to continue this process. Restructuring procedures in the United States and Canada It will facilitate our sales process, resolve our liquidity issues, strengthen our balance sheet and better position DCL for the future. Additionally, we thank all DCL employees for their unwavering dedication and tireless efforts during these challenging times.
DCL files the usual Day 1 petitions with the courts that, once approved, will allow the company to operate its business in the normal course of business under Chapter 11 and the CCAA, including: granting authority to pay employee salaries and benefits and fulfill obligations to customers in the ordinary course of business. The Company will also pay all suppliers in the normal course of business for all goods and services Submitted on or after the filing date under Chapter 11.
To facilitate the restructuring of the company, Scott Davido Ankura Consulting Group (Ankura) has been appointed Director of DCL Restructuring, and Ankura Consulting Group is serving as the Company’s financial advisor. The firm is represented by King & Spalding LLP and Blake, Cassels & Graydon LLP as legal advisors. TM Capital Corp. is the company’s guarantor.
You can obtain additional information by visiting the sitehttps://cases.ra.kroll.com/DCLby contacting DCL Claims Agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (toll-free within the US and Canada) or +1 (646)440-4160 (international), or by email[email protected].
DCL is a manufacturer and supplier of pigments to customers in the coatings, plastics, printing and paper industries worldwide. Our wide range of pigments is backed by technical expertise, our commitment to service excellence, continuous improvement, environmental, health, safety and social responsibility. Please visit the sitewww.pigments.comFor more information about our product range.
Ankura Consulting Group, LLC is an independent international consulting services firm that provides comprehensive services and solutions to assist clients at critical entry points 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 fields of activity and areas of expertise. Collaborative lateral thinking, hard-earned expertise, expertise and multidisciplinary abilities drive results. Ankura is unique in its ability to help clients protect, create and capitalize on value. For more information please visit the website,ankura.com.
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