Sungard details DIP facility claims distribution post-effective date

Chicago, Nov. 10 – Sungard AS’s Chapter 11 plan included a payout to holders of term loan debtor-in-possession claims that would be determined as of the effective date, according to previous filings with the U.S. Bankruptcy Court for the Southern District of Texas.

With a Nov. 10 effective date, the company filed a supplement with a revised plan administrator agreement that detailed the payout for DIP claims.

On Thursday, the plan administrator will distribute at least $33,057,000 to the term loan DIP agent for distribution to claimants.

Within 90 days, there will be a second distribution in an amount to be determined in consultation between the plan administrator and an ad hoc group.

Additional distributions thereafter will be determined in accordance with the plan and DIP documents, as determined again by the administrator and ad hoc group.

Absent setting aside funds for winding down the estates, proceeds from the sale of assets owned by the French affiliate, the sale of any other previously unsold assets, tax rebates or refunds and other receipts will be promptly distributed to the DIP agent.

Additionally, the plan administrator will establish a reserve for the first-lien sale consideration in the amount of $500,000. Upon the roll-up recharacterization, as soon as reasonably possible, the plan administrator will distribute the first-lien sale consideration to the prepetition term loan agent for distribution to holders of first-lien credit agreement claims in accordance with the plan.

As reported in May, Sungard’s DIP financing package comprised a $50 million senior secured revolving credit facility and a $285.9 million senior secured multi-draw term loan, consisting of up to $95.3 million in new money loans and up to $190.6 million in rolled-up prepetition debt.

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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