International Company Transaction - syncreon
Aryo Shalviri, Blake, Cassels & Graydon LLP
Andriana Georgallas, Weil, Gotshal & Manges LLP
John Singh, PJT Partners
Todd A. Zoha, AlixPartners
Linc Rogers, Blake, Cassels & Graydon LLP
Thomas B. Osmun, AlixPartners
Ryan Preston Dahl, Weil, Gotshal & Manges LLP
Allison Liff, Weil, Gotshal & Manges LLP
Matt Barr, Weil, Gotshal & Manges LLP
Steve Zelin, PJT Partners
About the Transaction:
Syncreon is a global logistics services provider to technology and automotive manufacturers that is headquartered in Michigan, with a Dutch holding company and more than 100 facilities across 20 countries and six continents.
The landmark cross-border restructuring of syncreon Group Holdings B.V. was effectuated through English schemes of arrangement for its Dutch subsidiary, syncreon Group B.V., and its English subsidiary, Automotive (UK) Ltd., paired with Chapter 15 recognition in the U.S. and CCAA recognition in Canada.
This was reportedly the first-ever use of an English scheme to restructure debt issued by a U.S.-based global enterprise and the first time that CCAA recognition of an English scheme had been granted. This scheme now provides global companies with a blueprint for using English courts to avoid protracted cross-border insolvency proceedings when U.S. courts would face jurisdictional hurdles.
The restructuring was commenced in July 2019 and completed in approximately eight weeks, and reduced syncreon's $1.1 billion of funded debt by $690 million, while enabling the business and its 14,000 employees to operate without disruption. The company also raised an incremental $125.5 million in liquidity from an ad hoc group of lenders to support ongoing operations.