Avaya has revealed its steps toward exiting Chapter 11 bankruptcy, including the appointment of a new chief executive, agreements with priority creditors and a debt reduction of more than US$3 billion.
The unified communications vendor announced overnight that it had entered into a plan support agreement (PSA) with more than 50 percent of the holders of its first lien debt. Negotiations with Avaya creditors of the “ad hoc group of first lien creditors” have led to an agreement to wipe more than US$3 billion from the vendors debts.
Additionally, the company struck a deal with the US Pension Benefit Guaranty Corporation (PBGC), which will take on the obligations of Avayas staff pension plan in the US.
The…
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