DCL Holdings solicits court for key employee incentive program

Chicago, Dec. 30 – DCL Corp. outlined a key employee incentive program that will be evaluated at a hearing on Jan. 19, according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

The debtors are pursuing a sale during the bankruptcy process of substantially all of their assets.

DCL seeks to implement a key employee incentive program to retain certain key employees during the sale process and maximize the value of their estates.

In the months leading up to the petition date, the debtors lost multiple executive-level employees, including the chief financial officer and chief commercial officer.

DCL and its financial advisers from Ankura Consulting Group, LLC have identified four executive employees to incentivize through the bankruptcy process.

Payments under the program would be linked with the realization of a qualified bidder in addition to the stalking horse bid and maintenance of net cash flow in excess of net cash flows projected in the final debtor-in-possession budget.

In terms of the net cash flow target, employees will receive more if the cash flow exceeds 125% of the budget and a smaller payment if the cash flow exceeds 105% of the budget.

Additionally, one participant would be entitled to an additional payment so long as other certain critical employees are retained throughout the sale process.

The total amount of the program would be not more than $730,000.

Payments would be made within 30 days of the sale’s closing date.

The payments would be in addition to other retention payments the participants received prior to the petition date.

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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