Allen Systems Group, Inc. Emerges from Chapter 11 a Stronger Company

Company Completes Financial Restructuring

Reduces Long-Term Debt by More Than 60 Percent, to 240 Million

Emerges Well-Capitalized and with New Ownership

NAPLES, Fla.--(BUSINESS WIRE)-- Allen Systems Group, Inc. (“ASG” or the “Company”) announced today that it has formally completed its financial restructuring and has emerged from Chapter 11 as a stronger company, well-positioned to deliver exceptional value to its customers. ASG exits the restructuring process with a significantly reduced debt load, healthy operating cash flow, and the support of its new owners who are some of the largest and most sophisticated institutional investors in the world. ASG’s quick exit from Chapter 11 comes just over two months after the Company's Chapter 11 filing.

“Our emergence from Chapter 11 marks the start of a new beginning for our company,” said John C. DiDonato, president of ASG. “As a result of the financial restructuring, we now have a more serviceable level of debt and the capital to sustainably operate, invest in, and grow the business.”

Throughout the Chapter 11 process, ASG fully honored all commitments to its customers, suppliers and employees while managing day-to-day operations as usual.

“We want to thank our customers and business partners for their loyal support throughout this process,” continued DiDonato. “I would also like to thank our employees for their hard work, dedication and immeasurable contribution. During our restructuring, we continued to operate without disruption and to execute on our plans. As a result, we delivered a very successful first quarter, and we anticipate that this momentum will carry us forward into the remainder of the year.”

Continued Investment in Product Portfolio

ASG’s product portfolio includes Mobius, an enterprise scale content management system ideal for purpose-built applications; Rochade-Becubic, an expanding data governance solution suite that helps enterprises maximize value from their data with minimum risk; CloudFactory, a powerful workspace solution that delivers a compelling user experience while reducing the operating costs for hybrid cloud environments; Atempo, a proven data protection and digital assets archiving solution; and a comprehensive suite of IT operational and application management tools to help enterprises get more value from their operations.

“This restructuring gives us the confidence to continue investing in our products and services,” said Ernest Scheidemann, executive vice president and chief financial officer of ASG. “With our improved cash flow, we now have the financial flexibility and resources to expand the business and execute on our long-term strategies.”

Corporate Governance and Ownership

ASG is owned by funds managed by or affiliated with KKR Credit Advisors (US) LLC (“KKR Credit”), an affiliate of Kohlberg Kravis Roberts & Co. L.P. (“KKR”); Franklin Square Capital Partners; Blackstone’s (NYSE: BX) credit arm GSO Capital Partners LP; Ellis Lake Master Fund L.P.; Cetus Capital, LLC, Stone Lion Portfolio L.P.; and other leading institutional investors.

“Throughout the restructuring, ASG and its executive team have remained dedicated to delivering value to the market,” said Brad Marshall, senior managing director of GSO Capital Partners LP. “We are excited about its product direction and strategy for lasting success, and we anticipate our ongoing support will help ASG continue to meet its goals of advancing IT solutions to address industry demands and customer requirements.”

“We believe this restructuring will create significant value for ASG customers, business partners and employees,” said Nikhil Srivastava, director of Kohlberg Kravis Roberts & Co (KKR). “ASG has built strong customer equity through its IT solutions, and we are optimistic about future growth as the Company continues to deliver superior IT products.”

As part of the Company's financial restructuring, a new board of directors was announced. The new board includes Brad Colman of GSO Capital Partners LP, Michelle Hour of Kohlberg Kravis Roberts & Co (KKR), as well as independent directors Paul A. Lacy and Eric C. Salzman, who served on ASG’s board of directors during the restructuring process.

The Company’s existing senior management will continue to serve under the oversight of President John DiDonato and the new Board.

About ASG Software Solutions

ASG Software Solutions connects sophistication and experience with agility and technological efficiency, through its vendor-agnostic cloud, content and systems solutions. ASG helps companies solve today’s most pressing business issues, including everything from reducing operating costs and enhancing workforce productivity to ensuring regulatory compliance. With customers like American Express, Coca-Cola, GE, HSBC, IBM, Lockheed Martin, Merrill Lynch, Procter & Gamble, Sony, Verizon, and Wells Fargo, ASG can proudly say that more than 70 percent of global Fortune 500 companies trust it to optimize their existing IT investments. Founded in 1986, ASG Software Solutions is a global company headquartered in Naples, Florida, USA, with more than 1,000 employees. For more information, visit www.asg.com or find us on Facebook, LinkedIn, Twitter or YouTube.

March Communications
Meredith L. Eaton, +1 617-960-9877
[email protected]

Source: ASG Software Solutions

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