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Sungard AS secured term loan lenders receive $300 million of secured debt and 89% of equity in fast-tracked two-day chapter 11 case

May 2019

Jones Day represented a group of secured term loan lenders of Sungard Availability Services ("Sungard AS"), a leading provider of critical data recovery and production services and related integrated solutions, in connection with its prepackaged chapter 11 case filed in the U.S. Bankruptcy Court for the Southern District of New York.

Sungard AS emerged from bankruptcy less than 40 hours after filing, earning the title of "quickest prepackaged bankruptcy in recent memory" from certain industry publications. Sungard AS' chapter 11 plan was negotiated by the Jones Day-led secured lender group and a group of crossover creditors. The plan received the support of holders of approximately 97% in amount of term loan claims and approximately 87% in amount of senior unsecured notes claims. Sungard AS did not receive a single vote rejecting the plan.

Sungard AS' chapter 11 plan effects the exchange of approximately $990 million in prepetition secured term loan claims (inclusive of a $155 million obligation under the term loan credit agreement) for 89% of the equity in reorganized Sungard AS and a $300 million junior takeback term loan. Noteholders received 11% of the reorganized equity, in addition to 2% that certain term loan lenders agreed to distribute to noteholders in respect of a settlement concerning the $155 million credit agreement obligation. Certain secured term loan lenders also agreed to backstop a portion of Sungard AS' $100 million senior exit facility, which will provide Sungard AS with post-emergence liquidity.

For additional information about this matter, please contact: Scott J. Greenberg, Michael J. Cohen

Client(s): Sungard Term Loan Group
Office(s): New York, Chicago