Sungard Availability Services, an information-technology services provider, filed for chapter 11 protection for the second time in three years to grapple with falling demand for its business-recovery services and other lingering challenges exacerbated by the COVID-19 pandemic, WSJ Pro Bankruptcy reported. Privately held Sungard and its corporate affiliates filed for chapter 11 protection Monday in the U.S. Bankruptcy Court in Houston and sought similar court protection in Canada. The bankruptcy filing comes weeks after Sungard’s U.K. affiliate initiated administrative proceedings in part because of high energy costs caused by Russia’s invasion of Ukraine. Wayne, Pa.-based Sungard sped through bankruptcy in 2019, winning approval of a creditor-backed debt-cutting plan just 24 hours after filing chapter 11. Sungard said Monday that while the previous bankruptcy was effective in trimming about $800 million in debt, the process didn’t address its fundamental problems, such as expensive leases that have weighed on its business. Sungard Chief Executive Officer Michael Robinson said in a sworn declaration that demand for its workplace-recovery services dropped significantly since its business customers adopted policies to work from home during the pandemic. Companies have also delayed or reduced their IT costs, prompting some customers not to renew contracts, Mr. Robinson said.
