TORONTO, Dec. 21, 2022 /PRNewswire/ — To facilitate the continued course of to promote its companies, DCL Company (DCL or the Firm), a number one producer and reseller of shade pigments, introduced at present that, on December 20, 2022, its United States based mostly subsidiaries have filed voluntary petitions for a court-supervised reorganization below Chapter 11 of the Chapter Code (Chapter 11) within the U.S. Chapter Court docket for the District of Delaware. Contemporaneously, the Firm and its Canadian subsidiaries have additionally commenced court-supervised restructuring proceedings in Canada below the Corporations’ Collectors Association Act, R.S.C. 1985, c. C-36, as amended (CCAA).
As a part of these filings, DCL has entered right into a stalking horse asset buy settlement (APA), below which DCL will promote considerably the entire Firm’s property in a sale course of below Part 363 of the U.S. Chapter Code. The settlement is topic to court docket approval and any greater or higher presents obtained pursuant to the bidding procedures proposed as a part of the sale course of.
DCL’s worldwide subsidiaries in the United Kingdom and the Netherlands should not included within the Chapter 11 or CCAA proceedings.
In assist of the restructuring course of, DCL’s current lender, Wells Fargo, has agreed to supply as much as $55 million in debtor-in-possession financing. Following court docket approval, the Firm expects this financing, along with money stream from operations, to assist the enterprise in regular operations through the court-supervised course of. The Firm is constant to serve clients and finish customers within the U.S., Canada, and globally.
Scott Davido, the Firm’s Chief Restructuring Officer, stated, “We’re happy to enter into this asset buy settlement, and to have the continued assist of our lenders as we full this course of. The U.S. and Canadian restructuring proceedings will facilitate our sale course of, tackle our liquidity challenges, strengthen our steadiness sheet and higher place DCL for the long run. Moreover, we thank the entire DCL workers for his or her continued dedication and tireless efforts, throughout these difficult instances.”
DCL is submitting customary first-day motions with the courts that, as soon as accepted, will enable the Firm to function its enterprise within the regular course below Chapter 11 and CCAA, together with, amongst different issues, granting authority to pay worker wages and advantages and honor buyer commitments within the unusual course of enterprise. The Firm may even pay all distributors within the unusual course for all items and providers supplied on or after the Chapter 11 submitting date.
To help with the Firm’s restructuring, Scott Davido of Ankura Consulting Group (Ankura) has been named as DCL’s Chief Restructuring Officer, and Ankura Consulting Group is appearing because the Firm’s monetary advisor. The Firm is represented by King & Spalding LLP and Blake, Cassels & Graydon LLP as authorized counsel. TM Capital Corp is the Firm’s funding banker.
Further info is offered at https://instances.ra.kroll.com/DCL, by calling DCL’s declare agent, Kroll Restructuring Administration LLC, at (888) 510-7189 (US/Canada Toll Free) or +1 (646) 440-4160 (Worldwide), or by emailing [email protected].
DCL Company is a producer and provider of pigments for our clients within the coatings, plastics, printing ink and paper industries worldwide. Our intensive vary of pigments is backed by technical experience, our dedication to service excellence, steady enchancment, environmental, well being, security and social accountability. Please go to www.pigments.com for extra info on our product vary.
Ankura Consulting Group, LLC is an unbiased world knowledgeable providers and advisory agency that delivers providers and end-to-end options to assist shoppers at vital inflection factors associated to battle, disaster, efficiency, danger, technique, and transformation. The Ankura workforce consists of greater than 1,800 professionals serving 3000+ shoppers throughout 55 international locations who’re leaders of their respective fields and areas of experience. Collaborative lateral considering, hard-earned expertise, experience, and multidisciplinary capabilities drive outcomes and Ankura is unequalled in its potential to help shoppers to Shield, Create and Get better Worth. For extra info, please go to, ankura.com.
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SOURCE DCL Company