Avaya is implementing a financial restructuring that will accelerate our ongoing business transformation and significantly enhance our ability to invest in our innovative cloud-based communications portfolio.
We have entered into a Restructuring Support Agreement with the overwhelming majority of our financial stakeholders that will enable us to:
- Eliminate more than 75% of our debt
- Substantially increase our cash and strengthen our liquidity position
- Move forward with one of the strongest balance sheets in our industry
- Position Avaya and our iconic brand for long-term success
To efficiently implement the financial restructuring, we are utilizing an expedited prepackaged court-supervised restructuring process. On February 14, 2023, Avaya and all of our U.S. subsidiaries filed voluntary Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas.
Due to the overwhelming support of our financial stakeholders, we expect to complete this process within 60 to 90 days. Our subsidiaries outside of the U.S. are not included in this process.
The financial restructuring process will have no impact on Avaya’s stakeholders – including customers, channel and strategic partners, suppliers, vendors or employees.
We are operating normally and continuing to provide our full suite of communications solutions and outstanding service and support.
We have received commitments for approximately $780 million in new financing from certain of our existing lenders and a bank syndicate. This new financing, together with cash on hand and cash generated from ongoing operations, is expected to provide substantial liquidity to support Avaya during the restructuring process and beyond.
Under the terms of our restructuring agreement, all of Avaya’s vendors and suppliers will be paid in full, regardless of when goods or services were delivered.
