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Avaya Debt Restructuring Progress Update

Avaya has reached a major milestone that puts the end of its chapter 11 process clearly in sight.

On 24 October Avaya announced it reached a consensus Plan of Reorganization supported by all of its major creditors. This global resolution means the company is closer than ever to emerging from chapter 11 this year as a stronger, more competitive company.

In addition, Avaya is executing an exit financing process that will provide the company with the funding necessary to execute its Plan and exit Chapter 11 as a publicly traded company. The exit financing – fully underwritten commitments from a group of banks led by Goldman Sachs and Citibank – totals approximately $3 billion, half of the debt carried by the company prior to entering chapter 11.

Avaya also filed a request for an updated confirmation schedule to accommodate this resolution, which asks to maintain a November start date for its confirmation hearing. The company will still need the required creditor votes for its Plan and confirmation by the Court – among other approvals -- and fully expects to complete the restructuring and emerge from chapter 11 in 2017.

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