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Avaya Gets Court's OK on Reorganization PlanAvaya Gets Court's OK on Reorganization Plan

Next up: Out of bankruptcy by year's end

Beth Schultz

November 28, 2017

1 Min Read
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As it had hoped, Avaya today received the bankruptcy court's approval for the reorganization plan it crafted over the summer (see related post, "Avaya Takes Critical Next Step in Bankruptcy Process"). With this official OK in hand, an exit from bankruptcy will follow before year's end, Avaya announced.

In a prepared statement, new Avaya CEO Jim Chirico promised the company would be "stronger than ever and positioned for long-term success, with the financial flexibility to create even greater value for our customers, partners and stockholders."

As specified in the reorganization plan filed in August, Avaya will have approximately $3 billion of funded debt when it emerges from Chapter 11 protection -- roughly half of the debt plaguing the company when it entered into bankruptcy in January 2017. In addition, it will have a "$300 million senior secured asset-based lending facility" available when it exits court protection, and should have more than $200 million in annual cash interest savings compared to fiscal year 2016, Avaya stated.

The opening to this post has been updated to more accurately reflect expectations about the outcome of the reorganization plan confirmation hearing.

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About the Author

Beth Schultz

In her role at Metrigy, Beth Schultz manages research operations, conducts primary research and analysis to provide metrics-based guidance for IT, customer experience, and business decision makers. Additionally, Beth manages the firm’s multimedia thought leadership content.

With more than 30 years in the IT media and events business, Beth is a well-known industry influencer, speaker, and creator of compelling content. She brings to Metrigy a wealth of industry knowledge from her more than three decades of coverage of the rapidly changing areas of digital transformation and the digital workplace.

Most recently, Beth was with Informa Tech, where for seven years she served as program co-chair for Enterprise Connect, the leading independent conference and exhibition for the unified communications and customer experience industries, and editor in chief of the companion No Jitter media site. While with Informa Tech, Beth also oversaw the development and launch of WorkSpace Connect, a multidisciplinary media site providing thought leadership for IT, HR, and facilities/real estate managers responsible for creating collaborative, connected workplaces.

Over the years, Beth has worked at a number of other technology news organizations, including All Analytics, Network World, CommunicationsWeek, and Telephony Magazine. In these positions, she has earned more than a dozen national and regional editorial excellence awards from American Business Media, American Society of Business Press Editors, Folio.net, and others.

Beth has a bachelor’s degree in journalism from the University of Illinois, Urbana-Champaign, and lives in Chicago.