Avaya This week, after months of speculation, Avaya announced its long awaited financial restructuring plans. The company has entered into a Restructuring Support Agreement (RSA) with 90% of the Company’s secured lenders. The company’s press release adds, "To efficiently implement the Financial Restructuring, Avaya and all of its U.S. subsidiaries today filed voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas." Once the restructuring is complete, Avaya’s total debt will be reduced by 75% from $3.4 billion to $800 million, and that debt isn’t due until 2028. The restructuring will also increase the company’s cash on hand to approximately $600M, providing substantial liquidity for Avaya moving forward. Because Avaya has already secured agreement among more than 90% of its secured creditors, the restructuring is expected to be completed in only two to three months. This will result in Avaya having net debt leverage of less than 1x revenue, which is actually better than many of its publicly traded peers. As part of the process, Avaya has been delisted from the New York Stock Exchange; post-restructuring, it will emerge as a private company. The company is better off being private while it continues […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
