• Enterprise to find sale or debt-for-fairness swap
  • Prior individual bankruptcy decreased credit card debt by $800 million

(Reuters) – Technology company Sungard Availability Services returned to personal bankruptcy on Monday about 3 decades soon after wrapping up its prior Chapter 11 situation.

The Wayne, Pennsylvania-primarily based cloud solutions provider filed in the U.S. Individual bankruptcy Courtroom for the Southern District of Texas with about $424 million in secured debt. Sungard mentioned in a statement on Monday that while it diminished its personal debt load by extra than $800 million in the course of its 2019 individual bankruptcy, it did not solve “challenges inherent to the company’s operating structure,” such as burdensome leases and underused room in spite of initiatives to decrease those fees in new a long time.

The 2019 individual bankruptcy involved a prepackaged plan that was accredited by a New York individual bankruptcy court one particular day following it was submitted.

Sign-up now for Free unlimited obtain to Reuters.com

Sungard’s biggest shareholder is financial investment organization Angelo Gordon. Blackstone Credit history, Carlyle Team, FS/KKR Advisor LLC and Arbour Lane Funds Administration LP also keep significant stakes in the organization. It has operations, which remain ongoing, throughout the U.S., Canada, British isles, Eire, France, India, Luxembourg and Poland.

CEO Michael Robinson stated in a assertion that the firm’s fiscal difficulties was pushed by the financial effect of the COVID-19 pandemic, reduce demand for specified place of work-concentrated solutions as business staff commenced functioning remotely, and inflation in electricity charges. The firm also mentioned its British isles branch was strike by climbing electricity price ranges prompted by Russia’s invasion of Ukraine.

Sungard is considering a sale of its belongings or converting its current financial debt to equity. It at present has about $5 million in hard cash, according to court docket papers.

Sungard, which was represented by Kirkland & Ellis in its 2019 individual bankruptcy but has retained Akin Gump Strauss Hauer & Feld for the current circumstance, has lined up a $95 million personal loan to fund functions for the duration of the bankruptcy. It expects to finish the Chapter 11 restructuring process by mid to late summer months.

Chief U.S. Personal bankruptcy Judge David Jones in Houston will oversee the situation.

The scenario is In re Sungard AS New Holdings LLC, U.S. Bankruptcy Court docket, Southern District of Texas, No. 22-90018.

For Sungard: Philip Dublin, Meredith Lahaie, Marty Brimmage, Lacy Lawrence and Zach Lanier of Akin Gump Strauss Hauer & Feld and Matthew Cavenaugh, Jennifer Wertz and Rebecca Blake Chaikin of Jackson Walker

Sign up now for Free limitless access to Reuters.com

Our Criteria: The Thomson Reuters Believe in Principles.