Sungard Availability to Prepare Bankruptcy Filing, Sources Say
Private equity-owned Sungard Availability Services Capital Inc. is preparing a pre-arranged bankruptcy filing that would reduce its nearly $1.3 billion debt load and hand control to existing lenders in what could be the fastest court restructuring on record.
The technology company aims to file for Chapter 11 protection around May 1 with a confirmation hearing the next day, according to people with knowledge of the matter. To speed up the process, Sungard negotiated the terms of a restructuring support agreement with two creditor groups, the majority of whom support the deal, said the people, who asked not to be named because the discussions are private.
The Wayne, Pennsylvania-based company plans to skip a coupon payment that was due April 1 on its 8.75 percent notes maturing April 2022 as part of the restructuring process, the people said. Its plan depends on a bankruptcy judge’s approval of Sungard’s proposal to convert existing first-lien and unsecured debt into equity.
Lenders holding Sungard’s $421 million loan due 2021 and $380 million loan due 2022 are slated to receive around 89 percent of the reorganized firm, while holders of $425 million of unsecured notes will receive the remaining 11 percent, said the people. The company plans to emerge with around $400 million of debt on its balance sheet, most of which will be distributed to its existing secured lenders.
Sungard offers technology support to firms including cloud-based recovery services, employing over 3,000 people, according to its website.
Sungard has been negotiating the terms of the restructuring with two creditor groups. A group of both term-loan and bond holders, including GSO Capital Partners and Angelo Gordon, are working with law firm Akin Gump and investment bank PJT Partners, the people said.
A group of term-loan holders including Carlyle Group enlisted Jones Day as counsel and Houlihan Lokey as financial adviser, the people said. Sungard is represented by restructuring law firm Kirkland & Ellis, investment bank Centerview Partners and restructuring adviser AlixPartners.
“Our creditors recognize the value in what we’ve built, and are investing new capital into the business,” Sungard Chief Executive Officer Andrew Stern said in a statement sent to Bloomberg. Sungard “will emerge from this process as a much stronger company.”
Representatives for the various creditor firms and advisers either declined to comment or didn’t respond to requests for comment. Quotes on the company’s 2021 term loan are below 70 cents on the dollar, and the unsecured notes traded for just 4 cents on March 21.
Two months ago, Fullbeauty Brands Inc. set a record for the fastest U.S. corporate bankruptcy after taking about 21 hours to win court approval for its plan to restructure.
- Head of Penetration Testing
- United Kingdom
Head of Penetration Testing needed to join a security consultancy that are delivering client facing penetration testing services around Web app and Infrastructure. Looking for someone hands on that is able to manage a highly skilled technical team of testers. 50-60% of the time is expected to be hands on, other duties will include, but not be limited to; leading and managing the day to day running of the team, mentoring, team upskill, recruitment, reporting, escalation, process improvement etc. Flexible location although south east is preferred. Anyone with Check / CREST experience is highly desirable. MUST be able to achieve SC clearance. UK based role. All details kept in confidence.
- CONTRACT SOC Manager. London / Birmingham. URGENT Immediate role.
REF7847 Contract SOC Manager. SC cleared, London / Birmingham. Initial 3 month Contract. SOC Manager needed to for an URGENT 3-4 month CONTRACT. SC clearance is essential. The project is to aid in the setup, implementation and management of resources to help with the initial stand up stages of a new SOC within a greenfield site. This is a short term contract role whilst a permanent hire is brought on over the coming 3 to 4 months. Experience engaging with and managing client stakeholder relationships as well as 3rd party relationships is critical. The role will involve; setting up, implementing and fine tuning the various initial stages of a SOC environment. Experience establishing and building out technical process / operational capability, managing of technical teams (analysts, engineers and architects, creation of policy / playbooks, fine turning is key. SPLUNK is the tooling of choice… Interviewing immediately. Set up a call with me today on https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Direct contact details Chris.Holt@dclsearch.com or 07884666351
- SPLUNK Level 3 SOC Consultant, SIEM Splunk, London / Birmingham
REF CH7825 Level 3 SOC Consultant, SIEM Splunk, London / Birmingham £55,000 + Level 3 SOC Consultant, SIEM SPLUNK needed. Security Clearance. Permanent role Level 3 SOC Consultant, SIEM SPLUNK needed to join a public sector client. The ability to achieve SC clearance is essential. MUST have experience working with SPLUNK ideally to an Advanced Power User level. Splunk Enterprise Security (ES) knowledge and hands on experience highly desirable. The role will include, but not be limited to; managing and handling incidents end to end, supporting and mentoring level 1 / level 2 staff, supporting the SOC manager in the delivery of the SOC roadmap, engaging with the client stakeholders (other technical teams) as and where needed, use case development, advanced search and reporting etc. The individual MUST currently be living in the UK and be able to achieve UK security clearance. (SC) This is a permanent role To arrange a call with Chris Holt use this calendy link https://calendly.com/chris-holt/arranged-call-with-chris-holt-remote-soc-role Chris.Holt@dclsearch.com
- Aspiring Cyber Partner. Business lead, market maker.
Aspiring Cyber Partner (management consultancy) with Cyber specialism into Healthcare, Utilities and or Public Sector. Working with new and existing clients to help them solve, transform or evolve their cyber capabilities. MUST have; A proven management consultancy background in cyber. A history of identifying and closing new business opportunities. Currently Revenue generating / must be able to demonstrate recent wins. Client facing to board level with international businesses. Team leadership / mentoring experience. Extensive cyber industry experience. Digital transformation, Start-up environments etc. Experienced presenter at industry events, to be the public face of a business / capability. Breadth of knowledge across Cyber security. Service definition / creation. Would consider a senior director with experience delivering the above looking to step up. All conversations kept in confidence. To arrange a discreet call book a time to speak in my diary via https://calendly.com/chris-holt/cyber-partner-call Chris.Holt@dclsearch.com