The company will be backed by its existing lenders.

Claudia Adrien

March 22, 2023

2 Min Read
Bankruptcy Court

Avaya has completed its last major milestone of financial restructuring, officially reducing its total debt by more than 75%.

The U.S. Bankruptcy Court for the Southern District of Texas confirmed the company’s prepackaged plan of reorganization. Judge David R. Jones in a hearing Wednesday approved Avaya’s plan, which calls for “slashing some $2.6 billion of debt,” according to Bloomberg.

It also allows for Avaya to increase its liquidity position to over $650 million.

A majority of Avaya’s financial stakeholders support this plan. Based on this support, the company can accelerate its timeline to emerge from bankruptcy to become a private company.

Avaya will be backed by its existing lenders, including investment firms Apollo Global Management and Brigade Capital Management. They each have invested significant incremental capital as part of this process to “best” position Avaya going forward, representatives said.

After months of speculation, Avaya filed for bankruptcy in February. It was its second bankruptcy filing in six years.

‘Significant’ Business Value


Avaya’s Alan Masarek

Alan Masarek is Avaya’s CEO.

“The resounding support for our restructuring plan is a testament to the significant value our investors see in our business and the solutions we provide, and we look forward to capitalizing on the opportunities ahead,” Masarek said. “With considerable resources to execute on our R&D initiatives and cloud communications road map, we intend to accelerate the delivery of exceptional experiences to our customers and partners.”

The current restructuring should provide financial flexibility to accelerate Avaya’s investment in its cloud-based communications portfolio, the company said. This includes its customer experience offerings. Avaya has continued to serve its customers and partners without interruption throughout this process, officials said.

 “We embarked on this process with a clear goal — to create a stronger financial foundation that enables us to build on our competitive industry position, strengthen our partner ecosystem and better meet the needs of our customers with further investment in our cutting-edge, long-range product road maps,” Masarek said. “I am pleased with our progress as we prepare to complete this critical step of our business model transformation, and I am grateful for the confidence of our customers, partners, team members and investors along the way.”

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About the Author(s)

Claudia Adrien

Claudia Adrien is a reporter for Channel Futures where she covers breaking news. Prior to Informa, she wrote about biosecurity and infectious disease for a national publication. She holds a degree in journalism from the University of Florida and resides in Tampa.

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