PR99305

TORONTO, Dec. 22, 2022 /PRNewswire=KYODO JBN/ --

To facilitate the ongoing process to sell its businesses, DCL Corporation (DCL

or the Company), a leading manufacturer and reseller of color pigments,

announced today that, on December 20, 2022, its United States based

subsidiaries have filed voluntary petitions for a court-supervised

reorganization under Chapter 11 of the Bankruptcy Code (Chapter 11) in the U.S.

Bankruptcy Court for the District of Delaware. Contemporaneously, the Company

and its Canadian subsidiaries have also commenced court-supervised

restructuring proceedings in Canada under the Companies' Creditors Arrangement

Act, R.S.C. 1985, c. C-36, as amended (CCAA).

Logo - https://mma.prnewswire.com/media/1972897/DCL_Logo.jpg

As part of these filings, DCL has entered into a stalking horse asset purchase

agreement (APA), under which DCL will sell substantially all of the Company's

assets in a sale process under Section 363 of the U.S. Bankruptcy Code. The

agreement is subject to court approval and any higher or better offers received

pursuant to the bidding procedures proposed as part of the sale process.

DCL's international subsidiaries in the United Kingdom and the Netherlands are

not included in the Chapter 11 or CCAA proceedings.

In support of the restructuring process, DCL's existing lender, Wells Fargo,

has agreed to provide up to $55 million in debtor-in-possession financing.

Following court approval, the Company expects this financing, together with

cash flow from operations, to support the business in normal operations during

the court-supervised process. The Company is continuing to serve customers and

end users in the U.S., Canada, and globally.

Scott Davido, the Company's Chief Restructuring Officer, said, "We are pleased

to enter into this asset purchase agreement, and to have the continued support

of our lenders as we complete this process. The U.S. and Canadian restructuring

proceedings will facilitate our sale process, address our liquidity challenges,

strengthen our balance sheet and better position DCL for the future.

Additionally, we thank all of the DCL employees for their continued dedication

and tireless efforts, during these challenging times."

DCL is filing customary 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 CCAA, including, among other things, granting authority to pay

employee wages and benefits and honor customer commitments in the ordinary

course of business. The Company will also pay all vendors in the ordinary

course for all goods and services provided on or after the Chapter 11 filing

date.

To assist with the Company's restructuring, Scott Davido of Ankura Consulting

Group (Ankura) has been named as DCL's Chief Restructuring Officer, 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 investment banker.

Additional information is available at https://cases.ra.kroll.com/DCL, by

calling DCL's claim agent, Kroll Restructuring Administration LLC, at (888)

510-7189 (US/Canada Toll Free) or +1 (646) 440-4160 (International), or by

emailing DCLInfo@ra.kroll.com.

About DCL

DCL Corporation is a manufacturer and supplier of pigments for our customers in

the coatings, plastics, printing ink and paper industries worldwide. Our

extensive range of pigments is backed by technical expertise, our commitment to

service excellence, continuous improvement, environmental, health, safety and

social responsibility. Please visit www.pigments.com for more information on

our product range.

About Ankura

Ankura Consulting Group, LLC is an independent global expert services and

advisory firm that delivers services and end-to-end solutions to help clients

at critical inflection points related to conflict, crisis, performance, risk,

strategy, and transformation. The Ankura team consists of more than 1,800

professionals serving 3000+ clients across 55 countries who are leaders in

their respective fields and areas of expertise. Collaborative lateral thinking,

hard-earned experience, expertise, and multidisciplinary capabilities drive

results and Ankura is unrivaled in its ability to assist clients to Protect,

Create and Recover Value. For more information, please visit, ankura.com (

https://c212.net/c/link/?t=0&l=en&o=3742750-1&h=3638412662&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D3713830-1%26h%3D280963642%26u%3Dhttps%253A%252F%252Fankura.com%252F%26a%3Dankura.com&a=ankura.com

).

SOURCE DCL Corporation

Media Contact: Scott Davido, SDavido@pigments.com