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Avaya cleared to exit bankruptcy by end of 2017


Avaya Inc. filed for Chapter 11 bankruptcy protection back in January and almost a year later, it has now reached a major milestone in its debt restructuring process.

The US Bankruptcy Court for the Southern District of New York has approved the company’s plan for restructuring, which clears the path for Avaya to emerge from chapter 11 bankruptcy by the end of 2017 as a public company.

Earlier in November, the company secured $2.925 billion USD in exit financing and is projecting it will have a $300 million senior secured asset-based lending facility available once out of chapter 11 protection. This represents a significant reduction from the approximately $6 billion of debt owed by the company when it started the financial restructuring, the company says in its Plan of Restructuring.

The revised capital structure “is expected to result in more than $200 million in annual cash interest savings compared to fiscal year 2016,” Avaya says in a Nov. 28 press release.

Please note the Canadian division was never in receivership.


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