SKD Company

SKD Company entered CCAA protection on January 21, 2009 before the Ontario Superior Court of Justice (Commercial List) under court file 09-CL-7960; the proceeding is closed. Its principal secured lender was Comerica Bank under a Revolving Credit Agreement dated December 14, 2004, secured by security agreements over all present and after-acquired personal property and charges over the Brampton and Milton properties. Comerica was owed US$15,101,374.46 as at January 18, 2009 under a Forbearance Agreement, including subordinated participations of $2,179,000 purchased by certain customers; by February 11, 2009 total secured indebtedness stood at US$16.8 million. Unsecured exposure included $9.1 million in accounts payable as at January 13, 2009 and a $9 million defined benefit pension shortfall on a wind-up basis as of September 2008.