Thread regarding Sungard Availability Services layoffs

For those who missed it

https://www.prnewswire.com/news-releases/sungard-availability-services-takes-action-to-strengthen-operating-cost-structure-for-future-success-301522862.html

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Thanks to today's search engines and for finding your post. Paperwork for my firm to secure colo with SG will be rescinded.

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Post ID: @etj+1gdnLsP8

Sungard Availability Services (Sungard AS) today announced that, after evaluating several strategic alternatives, it has filed voluntary chapter 11 petitions in the U.S. Bankruptcy Court in Houston, Texas and commenced proceedings in respect of its Canadian subsidiary under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto, Canada. A Sungard AS subsidiary initiated an administration proceeding for its business in the United Kingdom on March 25, 2022, to preserve value while working toward a longer-term solution. Sungard AS firmly believes these actions together provide the best path forward to protect its operations and customers, and to address its financial challenges in a manner that maximizes value and best positions the business for long-term success.

"Like many companies, our business has been affected by challenges in our capital structure, driven by the global COVID-19 pandemic and other macroeconomic trends including delayed customer spending decisions, insourcing and reductions in IT spending, energy inflation, and reduction in demand for certain services," said Michael K. Robinson, Chief Executive Officer and President, Sungard Availability Services. "Over the past three years, we've made significant network, product and infrastructure investments which are being well-received by customers and gaining significant traction. We believe the chapter 11 process is a right and critical step forward for the future of our business and our stakeholders."

Sungard AS previously completed a "pre-packaged" chapter 11 filing in May of 2019. The 2019 process addressed Sungard AS's long-term debt issues by eliminating more than $800 million in debt and infused $100 million of new liquidity by the Company's creditors. While it was successful in reducing the Company's long-term debt, the process did not solve for challenges inherent to the Company's operating structure, mainly uneconomical leases and underutilized space. The business has been working to address these cost challenges over the last three years. Recent factors have resulted in the Company's decision to accelerate addressing the Company's cost structure in the U.S. for the overall financial stability of Sungard AS's global operations.

To support its ordinary course operations during the process, the Company secured access to $7 million of bridge financing in advance of the chapter 11 cases. In addition, the Company has received a commitment for up to approximately $95.3 million in new money debtor in possession (DIP) financing from certain of its secured lenders. The Company expects to complete the process by mid to late summer, 2022.

Based on the additional financing received, Sungard AS intends to meet its financial obligations, including paying suppliers in the normal course of business for goods and services delivered from today forward. The Company also has filed the customary motions to honor its ongoing commitments to employees and customers. As such, Sungard AS will continue to operate in the normal course of business, including delivering the high levels of service its customers expect.

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