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23 January 2017
| James Pearce
Avaya has successfully bid to tap into $425 million of a $725 million loan as it attempts to carry through a restructuring process following a bankruptcy filing.
The company filed for bankruptcy after it failed in a bid to
sell off its call centre business, and was unable to reach a
deal with creditors.
"The company has taken a decisive step to rightsize its
balance sheet," Pat Nash, one of the company's attorneys, told
Judge Stuart Bernstein at the US Bankruptcy Court for the
Southern District of New York.
In a statement on 20 January, Avaya CEO Kevin Kennedy said
the firm was looking to restructure after an in-depth review of
ways to address its capital structure.
Chapter 11 of the US Bankruptcy Code allows companies time
to restructure their balance sheet and try to survive.
"Reducing the company’s current debt through the
chapter 11 process will best position all of
Avaya’s businesses for future success," said