TORONTO, December 22, 2022 /PRNewswire/ — To facilitate the ongoing sales process of its businesses, DCL Corporation (or the Company, DCL), a leading manufacturer and marketer of colored pigments, today announced that effective December 20, 2022, its subsidiaries in the United States filed voluntary petitions for court-supervised reorganizations under Chapter 11 of the Bankruptcy Code (Chapter 11) in the United States Bankruptcy Court for the District of Delaware. At the same time, the Company and its Canadian subsidiaries have also entered court-supervised restructuring proceedings Canada under the Companies’ 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 a front bidder under which DCL will sell substantially all of the Company’s assets in a sale process pursuant to Section 363 of the United States Bankruptcy Code. The agreement is subject to court approval and receipt of a better or better offer according to the bidding processes offered in the sale process.

DCL’s international subsidiaries in the UK and the Netherlands are not affected by the Chapter 11 or CCAA proceedings.

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

Scott Davido, Head of Restructuring for the Company, said: We are pleased to have completed this purchase agreement and have the continued support of our lenders to complete this process. Restructuring proceedings in the United States and Canada will facilitate our sales process, solve our liquidity problems, strengthen our balance sheet and better position DCL for the future. In addition, we would like to thank all DCL employees for their tireless efforts and dedication during these difficult times.

DCL files standard first-day motions with the courts that, if approved, enable the company to conduct its business in the ordinary course of business under Chapter 11 and the CCAA, including: Authorizing the payment of salaries and benefits to employees and compliance of obligations to customers in the normal course of business. The company will also pay all suppliers in the ordinary course of business for all goods and services provided on or after the filing date under Chapter 11.

In order 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 acting as the Company’s financial advisor. The Company is represented by King & Spalding LLP and Blake, Cassels & Graydon LLP as legal counsel. TM Capital Corp is the company’s underwriter.

You can get additional information by visiting the websitehttps://cases.ra.kroll.com/DCLby calling DCL’s claims agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (toll-free within the United States and Canada) or +1(646)440-4160 (international) or by email[email protected].

About DCL

DCL Corporation is a manufacturer and supplier of pigments to our customers in the coatings, plastics, printing and paper industries worldwide. Our wide range of pigments is backed by technical expertise, our commitment to excellent service, continuous improvement, environment, health, safety and social responsibility. Please visit the websitewww.pigments.comfor more information about our product range.

About Ankura

Ankura Consulting Group, LLC is an independent international consulting services firm providing end-to-end services and solutions to assist clients at critical entry 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, domain expertise and multidisciplinary skills drive results, and Ankura is unique in its ability to help clients protect, create and capture value. For more information, visit the website,ankura.com.

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Press release sent on December 22, 2022 at 10:32 am and disseminated by: