Avaya presents chapter 11 plan of reorganisation

Nieuws Breedband Wereld 18 APR 2017
Avaya presents chapter 11 plan of reorganisation

Avaya has filed a chapter 11 plan of reorganisation in the US. The company filed for chapter 11 bankruptcy protection in January. CEO Kevin Kennedy said the company will now work with stakeholders to refine the plan and build consensus. 

Under the plan, the company will seek to reduce its pre-filing debt by more than USD 4 billion. The company will restructure through a debt-for-equity exchange, with some secured creditors getting 100 percent of reorganised Avaya's equity. Avaya's general unsecured creditors will share pro rata in a cash pool. Under the plan, the company will also continue to honour its US pension plans following its emergence from bankruptcy, as well as its labour agreements.

Avaya has requested a hearing on 25 May to consider approval of the Disclosure Statement related to the Plan. Following court approval, Avaya will distribute the plan and statement to voting creditors for their consideration.

The CEO said the company’s balance sheet now has more than USD 750 million in cash, reflecting certain financing proceeds and positive cash flow from operations.

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Bankruptcy - Insolvency, Shareholders & subsidiaries, Corporate strategy, Financial funding

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