Clover Technologies Group LLC filed for bankruptcy Tuesday to complete its pre-packaged plan for lenders to take full control of the technology recycling company, WSJ Pro Bankruptcy reported. The private equity-owned, Illinois-based company filed for chapter 11 in U.S. Bankruptcy Court in Wilmington, Del., with a debt-for-equity swap supported by more than 70 percent of its lenders. Owner Golden Gate Capital, which backs the plan, will see its equity wiped out as part of the restructuring. The pre-packaged plan entails lenders swapping their claims in Clover’s $650 million term loan into 100 percent of reorganized equity as well as a chunk of cash and a new $80 million take-back loan.
