DCL receives interim approval for DIP financing, access to cash

Chicago, Dec. 22 – DCL Corp. received approval to obtain post-petition financing and was granted access to its cash collateral, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

After a modicum of tweaks were made, the judge in the case signed off on the request.

As reported on Wednesday, the debtor-in-possession ABL credit facility will be on a super-priority, senior secured basis.

Wells Fargo, NA, pre-petition ABL agent and pre-petition lender, is providing the $55 million DIP facility.

The facility amount will include a roll-up loan.

Interest will be at SOFR plus 400 basis points. The default interest rate will step up by 200 bps, if necessary.

An unused line fee of 50 bps will be due monthly.

The post-petition financing will mature the earlier of March 31, 2023 or certain outlined bankruptcy case dates.

A final hearing regarding the issue is scheduled for Jan. 19.

Based in Toronto, DCL is a manufacturer and supplier of pigments to customers in the coatings, plastics, printing inks and paper industries around the world. The company filed Chapter 11 bankruptcy on Dec. 21 under case number 22-11319.

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