April 13, 2022
Sungard Availability Services (Canada) Ltd. and 11 US-based affiliated companies had their Chapter 11 proceedings recognized under the CCAA on April 13. For approximately 40 years, the companies have established and maintained resilient and recoverable IT environments for myriad businesses, including financial institutions, healthcare, manufacturing, logistics, transportation and general services. Headquartered in Wayne, Pennsylvania, the companies employ approximately 585 employees in the US and Canada. Operational liabilities, including long-term fixed lease costs, have weighed on the companies’ performance and ability to implement its business plan. The companies’ efforts have been further strained by the COVID-19 pandemic, faster than expected declines in demand for legacy products and increased competition for the companies’ more current, cloud-based products. In the weeks leading up to the filing and with the assistance of their advisors, the companies engaged in negotiations with an ad hoc group of term loan lenders over the terms of the restructuring. A&M is the information officer. Counsel is Cassels for the companies, Bennett Jones for A&M as information officer, Norton Rose for certain prepetition lenders; Miller Thomson for PNC Bank; DLA Piper for Landmark Infrastructure Partners; Camelino Galessiere for Orlando Corporation; and Faskens for Digital Toronto Nominee, Inc.
By Dina Milivojevic