The U.S. Bankruptcy Court for the District of Maryland Tuesday confirmed USi’s reorganization plan and the Annapolis, Md.-based application service provider anticipates exit from Chapter 11 court protection during the week of May 20. USi’s creditors voted in support of the plan.
Confirmation of the reorganization plan satisfies the primary condition required for closing of the previously announced $81 million initial investment in USi by an affiliate of Bain Capital. It is anticipated that this investment will close during the week of May 20, providing the cash needed to fully fund the business plan.
Under terms of the investment agreement, an additional $25 million is to be invested upon the achievement of certain business milestones. Bain Capital Partners is the private equity affiliate of Boston-based Bain Capital, LLC.
“Over the last 18 months, USi has made significant progress in improving and strengthening the operational side of the business, being the first in the industry to become EBITDA positive, while delivering the highest service levels in our history,” said Andrew Stern, chief executive officer of USi. “With the balance sheet restructuring complete and a fully funded business plan imminent, USi will be able to grow the business and execute against the dramatic potential of the market we serve as the industry leader.”
The company’s portfolio of service offerings includes software from Ariba, BroadVision, Lawson, Microsoft, Oracle, PeopleSoft, and Siebel as a continuously supported, flat-rate monthly service.