Cynergy Data announced today that it has received approval from the United States Bankruptcy Court for District of Delaware for its proposed bidding procedures and timetable for the sale of substantially all of its assets.
As part of its Chapter 11 sale process, Cynergy Data has entered into an asset purchase agreement with "stalking horse" bidder Cynergy Holdings, LLC, an investment vehicle that is managed by The ComVest Group, a private investment firm focused on providing debt and equity solutions to middle market companies. ComVest is a leading provider of capital to the financial technology markets and owns controlling interests in a number of companies in the electronic payment processing industry, including Pipeline Data, CardAccept, AirCharge, SecurePay and Northern Merchant Services.
Pursuant to the Bankruptcy Court approved procedures, other parties have an opportunity to submit bids on or before October 2, 2009 at 4:00 p.m. (EST). If no additional bids are received by the bid deadline, Cynergy Data will immediately seek Bankruptcy Court approval of its sale to Cynergy Holdings, LLC. If additional bids are received, an auction will take place on October 5, 2009, at the offices of the company's legal counsel Nixon Peabody LLP in New York. A hearing to approve the sale is scheduled for October 7, 2009, and Cynergy Data expects to close the sale shortly thereafter.
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According to Cynergy Data's chief executive officer, Marcelo Paladini, "We are pleased by Judge Gross' decision to approve our proposed bidding procedures. This is an important step to ensure that we will be able to complete our sale process and restructuring as quickly as possible, and begin the next stage in our company's history. We intend to continue providing world-class products and services to our merchants and ISO partners during this process and beyond."
In addition to approving Cynergy Data's sale procedures, during the September 15 hearing the Bankruptcy Court granted other motions seeking various forms of relief, including the company's retention of professionals to assist it during its Chapter 11 proceedings and its continued use of post petition financing. This relief will allow Cynergy Data to operate in the ordinary course during its Chapter 11 restructuring.
On Tuesday, September 1, 2009, Cynergy Data and two subsidiaries filed voluntary petitions for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Honorable Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware is presiding over Cynergy Data's chapter 11 proceedings. Copies of court documents are available at http://www.kccllc.net/cynergydata . Additional information regarding Cynergy Data's restructuring is available at www.cynergydata.com/restructuring .
