A.Y.K. acquires SRTX Inc.

Miller Thomson acted for A.Y.K. International Inc. (“A.Y.K. International”) in connection with the successful acquisition of SRTX Inc. (“SRTX”)

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Miller Thomson acted for A.Y.K. International Inc. (“A.Y.K. International”) in connection with the successful acquisition of SRTX Inc. (“SRTX”). The transaction closed on February 26, 2026.

SRTX, a Montreal‑based company operating under its Sheertex brand and known for ultra‑durable hosiery products, completed a court‑approved pre‑packaged reverse vesting order (“RVO”) transaction with A.Y.K. International. The transaction followed a comprehensive pre‑filing sale process in which 138 potential buyers and investors were invited to participate, culminating in eight non‑binding letters of intent and four binding offers.

In approving the sale, the Québec Superior Court assessed the reasonableness, fairness, and appropriateness of the proposed transaction and concluded that these criteria were satisfied, that the transaction represented the best available outcome and that the RVO mechanism was appropriate.

The Court also recognized the unique and difficult‑to‑achieve nature of the transaction “prepack” structure. Such transactions are often described as the “unicorns” of insolvency proceedings – rare and challenging to complete given the need to align competing stakeholder interests. This outcome reflects an uncommon degree of stakeholder alignment.

The transaction preserved the company’s ongoing operations and key assets, including its intellectual property and tax attributes, while isolating legacy liabilities in a residual entity.