Avaya has filed an amended plan of reorganisation and disclosure statement, with support of major stakeholders, representing an important milestone in the company’s restructuring process and giving a “clear and viable path to emerge from Chapter 11 in the near term”.
Danny Drew, MD: South Africa, Avaya, says that while Avaya has been working through the Chapter 11 process in the US, the South Africa business has progressed strongly.
“This agreement provides a clear and viable path to exit Chapter 11 in line with our strategy. This is an important milestone as we work to emerge as a strong and competitive company in the coming weeks,” he says.
“Over the last two years, we have been vocal about the transformation of the South Africa business; we recognised the need to restructure in order to align to the demands of the local market, to deliver software and services that local organisations need, and ensure the success of our customers.
“The transformation is proving positive: last year we reported that Avaya South Africa closed its fiscal 2016 with its strongest quarter in eight quarters, and the business has continued to build from there. I am pleased to note this progress has continued, with the local business to date.
“We take great pride with the level of confidence and support that we continue seeing from our customers and partners in South Africa,” Drew adds.
Key terms of the Amended Plan include:
* The reduction of Avaya’s debt by more than $3-billion from pre-filing levels;
* The settlement and transfer to PBGC of Avaya’s obligations under the APPSE;
* Avaya’s continued support of its obligations under the Avaya Pension Plan; and
* Initiation of steps to enable Avaya to emerge from chapter 11 as a public company.
Avaya has also announced a transition in its leadership team, with Jim Chirico appointed as CEO, effective October 1.