Wayne-Based Sungard Availability Services Expected to Enter Bankruptcy


Sungard Availability Services – the disaster recovery, data infrastructure, and business continuity firm based in Wayne – is expected to enter into a pre-packaged Chapter 11 bankruptcy filing in early May, writes Galen Moore for Philadelphia Business Journal.

The firm will continue under the control of hedge fund investors, such as Blackstone Group’s Angelo Gordon & Co. and Contrarian Capital Management. Both have loaned Sungard AS increasing amounts over the years.

The transaction would shift control away from the private equity buyout firms that acquired it 14 years ago.

The deal centers around two loans. A $421 million loan due in 2021 and a $380 million loan due the following year. Eighty-nine percent of the restructured firm will be owned by creditors, and the rest by the holders of $425 million in unsecured notes.

The bankruptcy filing comes after a four-month negotiation and will likely result in a new board of directors and management, according to CEO Andrew Stern.

“The approach the company had taken to disaster recovery really hadn’t changed in 20 years — and the world had moved on,” said Stern.

Read more about Sungard Availability Services in the Philadelphia Business Journal here.

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