Tue, 29 March 2022 | ADMINISTRATION
Administrators are in talks with potential buyers following the collapse of Sungard UK Availability Services, the UK arm of international data management company Sungard. The British company has appointed directors of Teneo Restructuring after succumbing to issues relating to the COVID-19 pandemic, energy costs and rents.
The company specializes in both cloud-based services and physical data centers, but demand for the latter has been significantly affected by the COVID-19 pandemic. The company’s clients include several large organizations in the public and private spheres, including the Home Office and JP Morgan.
Sungard Availability Services has reportedly been in talks with landlords since the start of the year over possible rent reductions, but the talks have reached an impasse with landlords refusing to agree to better payment terms. The company has also been affected by soaring energy costs.
Teneo Restructuring has now been appointed administrator of the UK business. The administrators have secured interim financing to allow the company to continue operations and are currently in accelerated discussions with potential buyers, who have not yet been identified.
In a statement to Sky News, joint director Benji Dymant said Teneo’s appointment and the short-term funding would provide “a platform to drive forward the company’s discussions with owners, to optimize costs and space, and with customers, to go through increased electricity costs.
Dymant added: “The company’s ability to continue to trade over the medium to long term, either to enable a rescue of the company as a going concern or to complete individual asset sales, will depend cost sharing between customers and owners.
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