Therefore, General Unsecured Creditors are not entitled to any recovery under the Global Settlement.” Although the Global Settlement contemplated a potential small cash distribution for General Unsecured Creditors, such distribution was contingent on the holders of Tranche C Term Loan DIP Facility Claims receiving a distribution pursuant to the Plan. As such, because the Debtors’ restructuring process (inclusive of any Sale Transactions consummated) did not result in value in excess of the Tranche A Term Loan DIP Facility Claims and Tranche B Term Loan DIP Facility Claims, the holders of Tranche C Term Loan DIP Facility Claims will not receive any recovery pursuant to the Plan. The Tranche B Term Loan DIP Facility Claims are also subject to the Roll-Up Recharacterization as prepetition First Lien Credit Agreement Claims.
#ALTER DOMUS FULL#
As a result, pursuant to the “Roll-Up Recharacterization” provision of the Final DIP Order, the full amount of the Tranche C Term Loan DIP Facility Claims will be deemed to be “un-rolled” and restored as prepetition Second Lien Credit Agreement Claims. the Tranche A Term Loan DIP Facility Claims and the Tranche B Term Loan DIP Facility Claims. “ sale process did not produce bids at a value in excess of the two senior most tranches of the Term Loan DIP Facility, i.e. The Combined Document provides on this unusual reversal: The disappointing sale results (albeit apparently still preferable to an equitization path) mean that some senior prepetition debt that had been promoted further to the Debtors’ debtor-in-possession (“DIP”) financing arrangements will be “un-rolled,” ie lose that promotion. The asset sale process may have found buyers for the Debtors’ three business lines, but not at prices that will see recoveries for most classes (see table below for the depth of the pain for a Plan that has first lien creditors getting less than 1%).
On October 13, 2022, the Debtors filed a revised Combined Document which reflected a definitive toggle to the Eagle Sale Scenario, with the possibility of an "Equitization Scenario" no longer part of the Plan. With that development, “the Debtors revised the Plan to remove the terms related to the Equitization Scenario and made other changes consistent with pursuing the Eagle Sale Scenario and a Wind-Down of the Debtors’ estates.” Ultimately a sale was, however, agreed with 11:11 stepping in again as a purchaser. At that point, what remained unsold were the Debtors’ Eagle Assets with the Debtors continuing in respect of those assets with a dual track Plan which contemplated an "Equitization Scenario" (ie a reorganization) around those assets if a sale could not be agreed.
colocation services and network services to 365 SG Operating Company LLC (the “365 Sale Transaction”) and on September 14, 2022, the Court approved the sale of substantially all of the assets exclusively relating to the Debtors’ cloud and managed services and mainframe as a service business (the “CMS Sale Transaction") to 11:11 Systems, Inc. On August 31, 2022, the Court hearing the Debtors’ cases approved the sale of the majority of the Debtors’ U.S. At filing, the Debtors, leading providers of cloud connected infrastructure solutions, noted estimated assets between $500.0mn and $1.0bn and estimated liabilities between $500.0mn and $1.0bn. Bankruptcy Court in the Southern District of Texas, lead case number 22-90018. On April 11, 2022, Sungard AS New Holdings LLC and 11 affiliated Debtors (“Sungard” or the “Debtors”) filed for Chapter 11 protection with the U.S. Further to this new gatekeeper mechanism, the Plan also includes broad new definitions for each of "Covered Claims" and "Covered Party." Also at the October 17th hearing, the Court issued an order approving the $60.0mn sale of the Debtors’ North American Recovery Services (RS) business (the "Eagle Assets") to 11:11 Systems, Inc. As revised (and now confirmed) the Plan includes last-minute amendments related to insurance and surety bonds with the Court also now agreeing to serve as a "gatekeeper" in respect of "a Claim or Cause of Action of any kind against a Covered Party" moving forward. Octo– The Court hearing the Sungard AS New Holdings cases issued an order confirming the Plan element of the Debtors’ Second Amended Combined Plan and Disclosure Statement. Sungard AS New Holdings, LLC – Court Confirms Cloud-Connected Infrastructure Solutions Provider’s Painful Second Amended Plan
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