Avaya's Reorganization Plan Filing: 10 Key Takeaways For Partners


Reorganization Plan

Avaya said in the filing that it believes its reorganization plan will reduce its pre-filing debt by more than $4 billion while strengthening the company's balance sheet and improved financial flexibility for the long term. The vendor said restructuring will be achieved through a debt-for-equity exchange, in which certain secured creditors would acquire 100 percent of the reorganized Avaya's equity. Avaya's general unsecured creditors will share pro rata in a cash pool.

"[This] is a crucial step forward in our effort to recapitalize Avaya's balance sheet and create a stronger and healthier company," said CEO Kennedy in a statement about the filing.

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