Avaya out of Chapter 11 this year

A court has confirmed Avaya’s second amended chapter 11 plan of reorganisation. As a result, Avaya expects to emerge from its restructuring process before the end of this year. 

Upon emergence Avaya plans to have:

  • Approximately $2.925bn of funded debt
  • A $300m senior secured asset-based lending facility available upon emergence from chapter 11 protection
  • A substantial(!) reduction from the approximately $6bn of debt on its balance sheet when Avaya commenced its financial restructuring 
  • A revised capital structure that is expected to result in more than $200m in annual cash interest savings compared to fiscal year 2016

Avaya President and CEO Jim Chirico said, “The Court’s approval of our plan is the culmination of months of hard work and extensive negotiations among our various stakeholders. In the coming weeks, Avaya will emerge from this process stronger than ever and positioned for long-term success, with the financial flexibility to create even greater value for our customers, partners and stockholders.”

Ioan MacRae, Avaya UK Managing Director says this offers greater freedom to invest in people, processes, and game-changing innovations, the focus on accelerating innovation and delivering solutions with “greater relevance for our customers and partners, and expanding our ability to meet the transforming needs and priorities of our customers with greater speed and agility”.