Cloud Computing Provider ConvergeOne Approved to Exit Bankruptcy

Cloud computing company ConvergeOne Holdings received court approval for a pre-arranged restructuring plan it negotiated with creditors before its bankruptcy.

ConvergeOne, backed by CVC Capital Partners, filed Chapter 11 in the US Bankruptcy Court for the Southern District of Texas last month with a plan to cut about $1.6 billion in debt. The plan provides the company with new equity and debt financing from Silver Point Capital and Monarch Alternative Capital, among others.

Judge Christopher Lopez agreed early on to allow the bankruptcy to proceed quickly to confirmation. The plan, which cut about 80% of ConvergeOne’s debt, prompted opposition from ...