Feb 8, 2015: Software Developer Allen Systems Files for Bankruptcy Protection
Allen Systems Group Inc., a closely held software developer, filed for bankruptcy after its senior secured lenders agreed to restructure the company’s debt in exchange for a controlling interest. The Naples, Florida-based company listed assets of as much as $500 million and debt of more than $666 million in its Chapter 11 petition filed in U.S. Bankruptcy Court in Wilmington, Delaware.
“Operationally, very little, if anything is expected to change during the Chapter 11 process,” John DiDonato, ASG’s president and chief restructuring officer, said in a statement. “Once this restructuring is implemented, ASG will have a more serviceable level of debt.”
Under the terms of the agreement with a consortium of senior lenders, ASG’s long-term debt will be reduced by $420 million and the remaining debt of $240 million will be refinanced at a “much lower interest rate,” according to the statement.
The accord was struck with a consortium led by certain funds sponsored by Franklin Square Capital Partners, KKR Credit Advisors LLC and Ellis Lake Capital LLC, according to the statement.
As part of its filing, ASG secured a commitment for $40 million in so-called debtor-in-possession financing from NewStar Business Credit to keep operating during the bankruptcy process, the company said in its statement.
ASG expects to be able to emerge from bankruptcy within 90 days, according to the statement.
The case is In Re Allen Systems Group Inc., 15-10332, U.S. Bankruptcy Court for the District of Delaware (Wilmington)
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