Sungard gets confirmation of Chapter 11 plan, approval of asset sale

By Sarah Lizee

Olympia, Wash., Oct. 17 – Sungard AS received confirmation of its Chapter 11 plan and approval of a $60 million sale of its recovery services to 11:11 Systems, according to a minute entry filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Sungard also received approval to sell its North American cloud and managed services (CMS) business to 11:11 and its colocation services, network services and workplace services assets to 365 Data Centers.

The plan includes a global settlement with required consenting stakeholders who have agreed to fund the wind-down amount.

Under the plan:

• Holders of term loan DIP facility claims will receive their pro rata share of available sale proceeds up to the allowed amount of their claims, which will be determined as soon as practicable after the effective date;

• Holders of priority tax claims will receive installment payments in cash with interest;

• Holders of other secured claims will receive payment in full in cash, delivery of the collateral securing their claims, reinstatement of their claims, or other treatment leaving their claims unimpaired;

• Holders of other priority claims will receive payment in full in cash, reinstatement, or other treatment leaving the claims unimpaired;

• Holders of first-lien credit agreement claims will receive their pro rata share of the first-lien sale consideration plus their pro rata share of any additional proceeds of any assets not included in the sale transactions available after repayment of the term loan DIP facility claims in full up to the allowed amount of holders’ first-lien credit agreement claims;

• Holders of second-lien credit claims will receive nothing;

• Holders of non-extending second-lien credit agreement claims will receive nothing;

• General unsecured claims will not be honored;

• Section 510(b) claims will receive nothing;

• Intercompany claims and interests will be canceled with no distribution; and

• Existing equity will be canceled.

Sungard is a Wayne, Pa.-based provider of disaster recovery services, managed IT services, information availability consulting services and business continuity management software. The company filed bankruptcy on April 11, 2022 under Chapter 11 case number 22-90018.

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