Canadian Finishing & Coatings Manufacturing Magazine Jan/Feb 2023 - 14

NEWS
Pigment Manufacturer files Chapter 11
To facilitate the ongoing process to sell its businesses, DCL Corporation, a leading
manufacturer and reseller of colour pigments, announced on December 20, 2022, that its
US-based subsidiaries have filed voluntary petitions for a court-supervised reorganization
under Chapter 11 of the Bankruptcy Code 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).
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. DCL is continuing
to serve customers and end users in the US, Canada, and globally.
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 honour 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.
Davido 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 US 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. "
CALENDAR
OF EVENTS
March 5-8
NASF Leadership Conference
The Westin Maui Resort & Spa,
Ka'anapali
Maui, Hawaii
nasf.org/leadership-conference
March 7-8
BIG IDEAS 2023
UV+EB Technology
Wyndham Bayside
San Diego, Calif.
www.bigideasconference.com
March 28-30
European Coatings Show
Nuremburg, Germany
www.european-coatings-show.com
May 24-25
CPCA's Annual Conference
& AGM
Queen's Landing, Vintage Hotels
Niagara-on-the-Lake, Ont.
www.canpaint.com
June 6-8
SUR/FIN
Cleveland, Ohio
www.nasfsurfin.com
AkzoNobel promotes Kavanagh to Managing Director of Industrial Coatings
Jim Kavanagh, who joined AkzoNobel in 1990
as a development chemist in its protective
coatings business, has been appointed as
managing director of the company's industrial
coatings division.
Kavanagh will lead the strategic direction
across a diverse portfolio, including coil and
extrusion coatings, packaging coatings, wood
finishes and wood adhesives.
During his 32 years with the company,
Jim Kavanagh
14
Kavanagh has held various positions, including
roles within product management and
www.cfcm.ca
marketing. Since 2000, he worked internationally
as a general manager and commercial director
based in China, Africa and the UAE. Most
recently, he was responsible for leading the
metal coatings business in EMEA as regional
commercial director.
Regarding his new role, Kavanagh said, " I'm
very proud to be leading a business with so many
talented individuals and teams across such a
diverse and impressive portfolio. I'm looking
forward to further developing our capabilities and
building on our leading global positions. "

http://www.nasf.org/leadership-conference http://www.bigideasconference.com http://www.european-coatings-show.com http://www.canpaint.com http://www.nasfsurfin.com http://www.cfcm.ca

Canadian Finishing & Coatings Manufacturing Magazine Jan/Feb 2023

Table of Contents for the Digital Edition of Canadian Finishing & Coatings Manufacturing Magazine Jan/Feb 2023