“Officially, Sungard describes the decision as taking action to strengthen its operating cost structure for future success, which is an interesting way to spin bankruptcy. A Chapter 11 filing in the U.S. allows for a corporation to reorganize assets and debts, but it’s typically one taken by a company with serious financial problems. That this is the second time Sungard has pursued Chapter 11 in recent years is not indicative of a company with solid fundamentals.”
7+ years of declining revenues, customer losses, cutting projects, constant layoffs, no innovation, high rents and blame the utilities. Not much left to strengthen. lots of spin.
Feel bad for the good folks that fall for the sound bites.
Now… when is that next round of layoffs or will this be another round of benefit cuts? There’s always not paying the attorneys (oops, the attorneys always get paid first).
Will a chapter 7 be #3?