Menu
Avaya emerges from bankruptcy

Avaya emerges from bankruptcy

The unified communications vendor filed for Chapter 11 bankruptcy in the United States in January

Credit: Avaya

Just weeks after saying it would emerge from Chapter 11 bankruptcy by the year’s end, Avaya has announced that it has successfully completed its debt restructuring and emerged from chapter 11.

The unified communications vendor filed for Chapter 11 bankruptcy in the United States in January, moving to reorganise the company to reduce its pre-filing debt, strengthen its balance sheet and improve financial flexibility.

In April, the vendor unveiled worsening financial numbers as it continued to combat rising debt levels, expecting declining revenue rates in the second fiscal quarter ended 31 March, 2017.

Avaya subsequently filed an amended plan of reorganisation in its chapter 11 cases, supported by a majority of shareholders of its first lien debt.

In late November, Avaya said it expected to emerge from Chapter 11 bankruptcy in its home country by December, after the United States Bankruptcy Court for the Southern District of New York approved its second amended reorganisation plan.

Now, the company has revealed it has successfully completed its emergence from bankruptcy in the US, and is taking the steps necessary to list on the New York Stock Exchange. 

The company expects to have approximately 110 million shares outstanding upon emergence.

“This is the beginning of an important new chapter for Avaya,” Avaya president and CEO, Jim Chirico, said. “In less than a year since the commencement of our chapter 11 restructuring, Avaya has emerged as a publicly traded company with a significantly strengthened balance sheet.

According to Chirico, the company reduced its prior debt load by approximately US$3 billion, and exits Chapter 11 with more than US$300 million in cash on its balance sheet. 

“The reduction of our debt and certain other long-term obligations will also improve annual cash flow by approximately [US]$300 million compared to fiscal 2016,” Chirico said.

“We have the flexibility we need to invest in the large and growing contact centre and unified communications markets as we complete our transformation to a software, services and cloud solutions provider.

“With a new Board and leadership team firmly in place, Avaya is now well-positioned to execute on its growth plan and deliver the returns and value expected by our stakeholders."

The company emerges from bankruptcy with an expanded channel partner program, which includes the addition of a cloud integrator stream.

The move was part of Avaya’s Edge program strategy for 2018 to help enable cloud delivery, integration and management.

The new track indicates the highest level of commitment to Avaya’s cloud business and makes it possible for partners to achieve Emerald, Sapphire or Diamond status as revenue will be opex-driven.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags NetworkingAvaya

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments