Avaya has filed for Chapter 11 bankruptcy to reduce over 75% of its $3.4bn debt after securing $780m in new financing to restructure its business.
The UC vendor said the new capital is expected to ‘provide substantial liquidity to support Avaya during the restructuring process and beyond’.
Avaya emphasised that customers and partners will not be affected during the process, which it expects to last between 60 and 90 days.
Avaya’s CEO Alan Masarek said: “Strengthening Avaya’s capital structure is a critical step to fully realise our transformation, and we move ahead as a well-capitalized company with one of the strongest balance sheets in our industry that includes substantial cash to invest in our own success.”
The move will see the firm delist from the New York Stock Exchange.
