The SRTX Group (Sheertex) in its transaction implemented under the Bankruptcy and Insolvency Act The SRTX Group (Sheertex) in its transaction implemented under the Bankruptcy and Insolvency Act

SRTX Inc. and its affiliates (collectively, the SRTX Group), widely known for their rip-resistant tights marketed under the Sheertex brand, operate in the textile and apparel industry. As a result of certain liquidity issues, the SRTX Group launched a strategic review in October 2025 with a view to exploring a potential transaction or investment in the SRTX Group.

The strategic review culminated in the acceptance of a bid from Québec-based A.Y.K. International Inc. (AYK). The transaction was structured as a pre-packaged share deal to be implemented through a statutory filing under the Bankruptcy and Insolvency Act (BIA). This reverse vesting order structure preserved the business within the existing corporate entities and enabled the SRTX Group to maintain certain permits, intellectual property rights and valuable tax attributes.

In February 2026, the SRTX Group filed Notices of Intention under the BIA and sought approval of the transaction with AYK. The Québec Superior Court approved the transaction, finding that it was undertaken in good faith, had broad stakeholder support and represented the best possible outcome for all stakeholders. The transaction closed two days after obtaining court approval.

Osler, Hoskin & Harcourt LLP advised the SRTX Group with a team consisting of Ilia Kravtsov, Jack M. Little and Catherine Saya (Insolvency and Restructuring), Gary Marshall, Hailey Chin and Jordan Geist (Emerging and High Growth Companies), as well as Justin Sherman and Mike Pede (Corporate).