DCL cancels auction; seeks approval of sale to stalking horse bidder

By Sarah Lizee

Olympia, Wash., March 13 – DCL Holdings (USA), Inc. canceled an auction for its assets scheduled for Monday and will seek approval of a sale to stalking horse bidder Pigments Holdings, Inc., according to a notice filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company said it did not receive any other qualified bids by the deadline, which was 5 p.m. ET on Friday.

As previously reported, the purchase price under the stalking horse agreement is a $45 million credit bid of prepetition term loan debt, in addition to enough cash to repay ABL debt in full, an additional cash consideration of up to $2.75 million and assumed liabilities.

A sale hearing will take place on March 16.

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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