Background

Sirva is a leading provider of relocation solutions to a well-established and diverse client base around the world.  Every year, the company conducts more than 300,000 relocations for its clients – corporate and government employees, as well as individual consumers.  Sirva’s well-recognized brands include Allied, DJK Residential and North American.

In order to recapitalize its balance sheet and restructure its bank debt, Sirva made the strategic decision to undergo a formal corporate restructuring.  On February 5, 2008, Sirva, along with sixty of its subsidiaries, filed for Chapter 11 protection in the Southern District of New York.  To expedite the process, the company filed a pre-packaged Chapter 11, providing a Plan of Reorganization at the time of filing.  Sirva successfully secured $150 million in debtor-in-possession financing with members of its pre-petition lender group.

Results

In conjunction with Sirva’s team of legal professionals at Kirkland & Ellis LLP and Alvarez & Marsal, KCC was engaged to streamline and facilitate the noticing and solicitation process throughout the accelerated timeframe of the case.

The Debtor’s unusual solicitation procedures involved gaining approval/rejection from the financial groups prior to Sirva filing its pre-packaged plan.  To streamline and coordinate the solicitation, KCC’s team utilized its proprietary web-based technology, KCC CaseView, to efficiently track and tabulate the voting results.  KCC’s high-volume production facilities played a key role in printing and timely distributing notices and ballots to over 60,000 potential creditors. 

Sirva emerged from Chapter 11 protection as a privately held company on May 12, 2008, ninety-six days after filing their pre-packaged Plan of Reorganization.  Sirva’s DIP was converted into a $215 million senior secured facility to fund operations and the company was able to reduce its bank debt by approximately $200 million.  Today, with a stronger financial foundation, Sirva maintains its position as a leading International provider of relocation services.

To learn more about how KCC can help ensure your success, email or call us at 866.381.9100.