Certus Automotive – Plant Closure

Dafton, as Hilco Global Mexico’s marketing agency, played a key role in the successful completion of the liquidation process for Certus Automation Mexico’s industrial assets in the country.

About Certus Automotive – Plant Closure

CERTUS CANADA, a Canadian auto parts manufacturer, was in a Bankruptcy and Insolvency Act in Ontario, Canada. Toronto Dominion Bank (TDB) was the creditor of loans to CERTUS CANADA guaranteed by machinery and equipment (M&E) located in Queretaro, Mexico, owned by CERTUS CANADA´s subsidiary in Mexico CERTUS MEXICO (Collateral).

 

Our client, Hilco Global Mexico, negotiated with TDB and acquired its portfolio with CERTUS CANADA, including all collection rights and the collateral. By virtue of this acquisition, HGM, CERTUS CANADA and CERTUS MEXICO executed a separate “Acknowledgment of indebtedness agreement” whereby CERTUS CANADA acknowledges Hilco Global Mexico as its senior creditor, and CERTUS MEXICO acknowledges Hilco Global Mexico as the sole beneficiary of collateral (M&E).

The challenge

The goal was to rapidly liquidate all assets to enable Hilco to recuperate its capital and vacate the industrial property, thereby avoiding additional rental expenses.

Much of the machinery for injection and plastic handling had little use (2016 to 2019) and was from well-known brands, which increased the interest of the assets in the market.

However, one of the main challenges was determining the strategy that would allow monetizing the chroming line since it was not from a recognized brand and represented an additional complexity to find an motivated buyer who would give it continued use.

STRENGTH IN NUMBERS

Business impact

Within three months, we successfully assisted Hilco in launching marketing campaigns and selling all assets from Certus.

454

Lots Sold

$9M

Revenue Generated

100

Bidders

Our solution

The first step was to thoroughly understand the assets we were marketing. In collaboration with Hilco’s engineers, we conducted comprehensive research to grasp the potential applications, target clientele, and the technical specifications of the machinery we were selling. This included reviewing the documentation and import status of each item to ensure accurate communication to prospective buyers. This vital information was then disseminated to everyone involved in the project—from the design team and advertising managers to our sales department. Understanding the full scope of the project is crucial when managing a plant closure.

Following this initial research phase, we proceeded to create all the campaign designs and set the budget across various media channels, both digital and printed. We also conducted a Virtual Tour to provide potential buyers with a clear sense of the equipment’s dimensions and physical condition, aiding their evaluation process.

Subsequently, we launched conversion campaigns and engaged in direct outreach, including calling international leads, to convert them into buyers. This multifaceted approach ensured a comprehensive understanding and effective promotion of the assets.

For this auction, we put together a robust digital strategy that includes:

“Dafton is the only agency that has joined us in an auction and accompanied us throughout the process. We’ve seen tangible results with them”

AUCTIONS MANAGER SENIOR hilco global mexico
Violeta Sandin

Mexico City

Mexico

Assets Sold

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