Sungard Availability Services (Sungard AS) announced on May 3rd that it has completed its prepackaged Chapter 11 restructuring after its acceptance by the US Bankruptcy Court Southern District of New York.
On May 1st 2019, the Company briefly put its US entities into Chapter 11 ‘to effectuate its consensual agreement with a majority of its creditors to reduce Sungard AS’ overall debt’. The restructuring reduced the Company’s debt by over $800 million and includes $100 million of new liquidity provided by the company’s creditors.
Sungard AS says that it ‘emerges from this process as a much stronger company with a sustainable capital structure to support the company’s investment and growth plan and to continue to service existing and new customers well into the future’.
Going forward Sungard AS will be led by newly appointed Chief Executive Officer Michael (Mike) K. Robinson, who replaces Andrew A. Stern, who served as CEO for nine years. Mr. Robinson brings extensive operating and board leadership experience in public and private communications, technology and infrastructure companies. He most recently served as CEO, President and a Member of the Board of Directors for Broadview Networks.
“I’m thrilled to be joining Sungard AS,” says Mr. Robinson. “Our strong heritage as a leader in IT services, colocation and disaster recovery creates an exciting opportunity for the emerged business. The strength of our restructured balance sheet combined with our robust solutions portfolio, extensive global footprint, strong customer base and the outstanding professionals who are dedicated to providing exceptional service for our customers make us uniquely positioned to take advantage of the market potential before us.”
The reorganized company’s new ownership and largest shareholders now include: Angelo, Gordon & Co., LP, The Carlyle Group Global Credit, FS Investments and GSO Capital Partners LP, all of whom will have representation on the restructured company’s board of directors, along with Mr. Robinson.
Further information:
The Chapter 11 case is ‘Sungard Availability Services Capital Inc., 19-22915, U.S. Bankruptcy Court, Southern District of New York (White Plains)’. Read more about this at: https://www.inforuptcy.com/filings/nysbke_292707-7-19-bk-22915-sungard-availability-services-capital-inc
The Debtors’ Supplemental Brief in Support of Confirmation of The Joint Prepackaged Plan of Reorganization of Sungard Availability Services Capital, Inc. and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code can be read here (PDF)
https://cases.primeclerk.com/sungardASballots/Home-DownloadPDF?id1=MTEwODE4OA==&id2=0