New Chapter 11 Filing – Sungard
On April 11, 2022, Sungard AS New Holdings, LLC and several affiliates have filed a petition for Chapter 11 relief in the Bankruptcy Court for the Southern District of Texas (Case No. 22-90018). The company reports $500 million to $1 billion in both assets and liabilities.
The filing follows developments with Sungard Availability Services (UK) Limited, an indirect subsidiary of Sungard AS New Holdings, LLC, which entered into administration on March 25, 2022. The debtors previously emerged from the filing of a prepackaged chapter 11 bankruptcy on May 13, 2019. In a press release, the company says that the 2019 bankruptcy reduced funded debt but did not “solve for challenges inherent to the Company’s operating structure, mainly uneconomical leases and underutilized space.”
The company further disclosed that it has received a commitment for “up to approximately $95.3 million” in new money DIP financing from certain of its secured lenders.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtor’s counsel.
Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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