US tech company Avaya’s second Chapter 11 bankruptcy reorganisation plan was approved by a New York court on Wednesday, following a year-long ordeal to reorganise their finances.
The plan sees the Silicon Valley-based company emerge from its restructuring process before the end of this year with around $2.9bn of funded debt, compared with more than over $6bn when it filed for bankruptcy.
They will also have a $300m senior secured asset-based lending facility and more than $200m in annual cash interest savings compared to fiscal year 2016.
Avaya President and CEO Jim Chirico said, “The court’s approval of our plan is the culmination of months of hard work and extensive negotiations among our various stakeholders. In the coming weeks, Avaya will emerge from this process stronger than ever and positioned for long-term success, with the financial flexibility to create even greater value for our customers, partners and stockholders.”
This telecommunications services provider filed for Chapter 11 bankruptcy protection under US law in January 2017, and sold its networking business for about $100m to US-based Extreme Networks.
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