The official name of the corporation was changed to New Valley Corporation in 1991, as part of the company's move to seek bankruptcy protection to eliminate the firm's overleveraged balance sheet while continuing to grow the money transfer business. The name change was used to shield the Western Union name from being dragged through the proceedings (and the resulting bad PR).[35] Under the day to day leadership of Amman and the backing of LeBow, the company's value increased dramatically through its years operating under chapter 11.

As part of the bankruptcy proceedings, Western Union's telegraphy business was sold to iTelegram.

Following various restructurings, including negotiations with Carl Icahn who became a large bond holder, New Valley Corporation was sold in a bankruptcy auction to First Financial Management Corporation in 1994 for $1.2 billion. In 1995, First Financial merged with First Data Corporation in a $6 billion transaction.

After acquiring the company, First Data Corporation made the decision to relaunch telegraphy services under the Western Union brand