Golden Gate’s 4L Files for Bankruptcy After Deal With Creditors

Golden Gate Capital’s 4L Holdings Corp. filed for bankruptcy protection after the recycler of mobile phones and other electronics reached a deal with its creditors to cut its roughly $644 million debt load and hand them control of a reorganized company.

4L, which operates under the name Clover Technologies, filed for Chapter 11 protection along with several affiliates after selling its printer cartridge recycling operations and focusing on its business of refurbishing electronics. Lenders would swap all but about $80 million of the company’s remaining term loans into 100% of the equity in the reorganized entity, according to court documents ...