Cloud services provider Sungard Availability Services has filed another bankruptcy, three years after wrapping up its initial bankruptcy case.
In a statement, Sungard said it has filed for bankruptcy at the US Bankruptcy Court in Houston, Texas, and commenced similar proceedings for its Canadian subsidiary at an Ontario Court.
The company explained it filed for bankruptcy a second time as the initial bankruptcy filing in 2019, which sought to address the company's long-term debt issues by eliminating more than $800 million in debt and infused $100 million of new liquidity, did not solve "challenges inherent to the company's operating structure, mainly uneconomical leases and underutilised space"
"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," Sungard CEO Michael Robinson said.
With the latest bankruptcy filing, Sungard is now considering whether to sell its assets or convert existing debt into equity. Sungard currently has about $5 million in cash.
The filings will not affect Sungard's operations in Ireland, France, India, Belgium, Luxembourg, and Poland, the company said.