Sungard Availability Services successfully emerged from its “prepackaged” Chapter 11 restructuring.
According to a court filing on Prime Clerk, Sungard also received a senior secured, superpriority, multiple-draw term credit facility in a principal amount of $50 million on an interim basis and an aggregate amount of $100 million from its creditors, with Cortland Capital Market Services serving as both administrative and collateral agent on the DIP financing.
On May 1, 2019, Sungard briefly put its U.S. entities into Chapter 11 to effectuate its consensual agreement with a majority of its creditors to reduce its overall debt. The restructuring reduced the company’s debt by over $800 million.
With the company’s plan of reorganization confirmed by the U.S. Bankruptcy Court for the Southern District of New York, Sungard AS emerged 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.
Sungard AS concurrently appointed Michael K. Robinson as its new CEO. Robinson will succeed Andrew A. Stern, who served as CEO for nine years.
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, leading the transformation of Broadview’s strategy and business model from a traditional local telecom service provider to a cloud-based Unified Communications as a Service (UCaaS) provider.
The reorganized Company’s new ownership and largest shareholders now include: Angelo, Gordon & Co., The Carlyle Group Global Credit, FS Investments and GSO Capital Partners, all of whom will have representation on the board of directors, along with Robinson.
Centerview Partners, Kirkland & Ellis and AlixPartners served as advisors to the company during the process. Akin Gump Strauss Hauer & Feld, PJT Partners and DH Capital served as advisors to a crossover group of the company’s prepetition secured lenders and unsecured noteholders and Jones Day and Houlihan Lokey Capital served as advisors to a separate group of secured lenders.
Sungard Availability Services provides critical production and recovery services to global enterprise companies. Leveraging more than 40 years of experience, the company designs, builds and runs critical IT services that help customers manage complex IT, adapt quickly and build resiliency and availability.
