Avaya to emerge from restructuring process after receiving court approval
The Court has confirmed Avaya’s second amended chapter 11 plan of reorganisation
The United States Bankruptcy Court for the Southern District of New York has granted Avaya the approval of its second amended Chapter 11 restructuring plan.
Jim Chirico, Avaya's president and CEO, 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."
With the approval, Avaya aims to emerge from its restructuring process before the end of this year. Additionally, the company expects to have $2,925bn of funded debt and $300m senior secured asset-based lending facility available from the emergence of Chapter 11 protection. As a result, the capital structure will generate more than $200m in annual cash interest savings.
Chirico added: "I want to thank our customers and partners for their continued support. The trust and loyalty of our global customer base and partner network have played a vital role in Avaya's success throughout this process.
"I also want to thank our dedicated and driven employees, who have remained focused on delivering the innovative solutions and industry-leading service that our customers expect from us. I look forward to working with our employees, customers and partners as we write the next chapter of the Avaya story."