Canadian aviation logistics company Sky-Link Aviation Inc. (“SkyLink”) completed a $200-million recapitalization transaction pursuant to a plan of compromise and arrangement under the Companies' Creditors Arrangement Act .
The recapitalization transaction included the exchange of approximately $123-million of secured notes for new equity and $10-million of new secured notes; the refinancing of SkyLink's first lien credit facility with a new US$18-million facility and the compromise and release of approximately $40-million of unsecured debt in exchange for new unsecured debt. Participants in the new credit facility and parties that backstopped the new credit facility also received equity in the recapitalized company.
SkyLink is a leading global provider of aviation transportation and logistics services, specializing in non-combat aviation services in high-risk conflict zones. SkyLink is based in Toronto, Canada, and has offices and operations around the world.
SkyLink's in-house legal team was lead by general counsel and chief compliance officer David Miller. Goodmans LLP acted for SkyLink with a team that included Robert Chad-wick, Logan Willis, Melaney Wagner, Caroline Descours and Jesse Mighton (corporate/restructuring); Celia Rhea and Dan Dedic (banking/finance); Tim Heeney and Andrew Lahey (corporate/securities); Carrie Smit (tax); Ken Herlin (real estate); and Fred Myers (litigation). Ernst & Young LLP acted as financial advisor to SkyLink.
SkyLink was represented in the United States by Akin Gump Strauss Hauer and Feld LLP with a team that included Carlos Bermudez and Michael Miller (corporate), and Jessica Westbrook (tax); and in Delaware by John Paschetto (corporate) and Christian Douglas (litigation) of Young Conaway Stargatt & Taylor, LLP.
Bennett Jones LLP acted for the ad hoc committee of note-holders, the debtor-in-possession lenders and the new first lien lenders with a team that included S. Richard Orzy, Sean Zweig, Raj Sahni and Karma Dolkar (restructuring); Mark Rasile, Helgi Maki and David Rotchtin (banking/finance); Jeffrey Kerbel and Kristopher Hanc (corporate), and Thomas Bauer (tax). PricewaterhouseCoopers LLP acted as financial advisor to the ad hoc committee of noteholders.
Duff & Phelps Canada Restructuring Inc. acted as SkyLink's CCAA monitor. Duff & Phelps was represented by Matthew Gottlieb and Andrew Winton (restructuring/litigation) of Lax O'Sullivan Scott Lisus LLP.
Dentons Canada LLP acted for a group of directors and officers of SkyLink with a team of Ryan Jacobs and Shayne Kukulowicz (restructuring); Barbara Grossman (litigation) and Frank Bowman (insurance). Harvey Chaiton (restructuring/litigation) of Chaitons LLP represented certain former shareholders of SkyLink; and John Finnigan of Thornton Grout Finnigan LLP (litigation), and Adam Wygodny (litigation) of Berkow Cohen LLP represented certain former employees of SkyLink.
SkyLink's original first lien lenders, Royal Bank of Canada and Bank of Montreal, were represented by Clifton Prophet and Vickie Wong (banking and restructuring) of Gowling Lafleur Henderson LLP. Alvarez & Marsal Canada ULC acted as financial advisor to the original first lien lenders.