Sungard Availability Services confirms pre-packaged Chapter 11 bankruptcy plan

Published: Tuesday, 02 April 2019 15:27

Sungard Availability Services has officially confirmed that the company will enter a ‘pre-packaged’ Chapter 11 bankruptcy filing on or around May 1st 2019. With over 75 percent of the secured lenders and over 85 percent of the noteholders already committed to vote to accept and/or support the plan, the company expects to emerge from bankruptcy very shortly after filing. The consensual agreement will reduce Sungard AS’ debt by over two-thirds and creates a sustainable capital structure to support the company’s investment and growth plans, as well as enhances its overall financial position.

“A diverse group of lenders came together very quickly, reaching an agreement that results in an appropriate capital structure that enables us to continue focusing on operating and growing our business,” said Andrew A. Stern, Chief Executive Officer, Sungard Availability Services. “Our creditors recognize the value in what we’ve built, and are investing new capital into the business. Sungard AS will emerge from this process as a much stronger company, continuing to service existing and new customers well into the future.”

Through the restructuring process, Sungard AS will continue to operate its business as usual. The restructuring contemplated by the Restructuring Support Agreement (RSA) is funded by a $100 million credit facility, which will provide the liquidity necessary to continue to implement the company’s business plan, including funding working capital and operational and capital expenditures during the expedited restructuring process. Once the restructuring is complete, Sungard AS’ creditors will own the company’s equity.