SKD Company (“SKD”) was a tier 1 automotive supplier of manufactured and supplied stampings, components and weldments with annual sales of approximately $500 million. SKD’s main customers were primarily the Big Three North American OEMs, as well as foreign-owned OEMs. SKD carried on operations in Canada from three locations, as well as from locations in the US and Mexico.
We initially acted as the Monitor under the Companies’ Creditors Arrangement Act in SKD’s restructuring proceedings, during which we oversaw SKD’s operations, which continued without disruption due to successfully negotiating a multi-party accommodation agreement among SKD, its senior lender and its customers. The positive cash flow from operations was used to repay in full the senior lender. During the Companies’ Creditors Arrangement Act proceedings, certain portions of the business were sold on a going-concern basis to a competitor. As the proceedings progressed, we were appointed receiver and trustee in bankruptcy. As receiver, we sold SKD’s remaining Canadian facilities and assets. The recoveries were then distributed to unsecured creditors by us, in our capacity as Trustee in Bankruptcy. In order to make these distributions, we resolved complex pension and employee matters. Recoveries for creditors exceeded expectations and a significant number of jobs were saved.