Skylink Express Inc., which has provided regional air cargo services throughout North America for over 25 years, obtained CCAA protection on March 11.

The company is one of Canada’s largest operators specializing in regional courier feeder operations and time-sensitive air cargo charter throughout North America. It is almost entirely reliant on UPS to generate revenue.

A restructuring of the UPS contract is required for Skylink to remain viable and to return to profitability, but discussions with UPS to date have been preliminary in nature.

The company intends to use the CCAA proceedings to immediately commence discussions with UPS with a view to restructuring the contract.

TD Bank, owed over $14 million, had brought a competing receivership application, but agreed to adjourn the application until the comeback hearing while the parties negotiated a forbearance agreement.

KSV is the monitor.

Counsel is Norton Rose Fulbright for the company, Cassels for the monitor, Paliare Roland for Momentum (the sole shareholder and DIP lender) and Fogler for TD Bank.

By: Dina Milivojevic