Avaya filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “If confirmed and consummated, the Plan will eliminate more than $4.0 billion in debt from the Debtors’ balance sheet and will provide the Debtors with the capital necessary to fund distributions to the Debtors’ creditors and provide the Debtors with working capital necessary to fund ongoing operations. To effectuate the Plan, the Debtors will pursue a consensual chapter 11 plan of reorganization, and intend to emerge from a chapter 11 filing pursuant to the Plan on an expedited timeline within eight to ten months following the Petition Date. The Plan eliminates the Debtors’ current secured debt load and contemplates that the Holders of the Debtors’ unsecured obligations will receive a Cash distribution on account of their Claims.”
In addition, “The Cash Flow Credit Facility Secured Claims shall be Allowed in the aggregate amount of $3,234,727,423. The First Lien Notes Secured Claims shall be Allowed in the aggregate amount of $1,299,000,000. The Second Lien Notes Claims shall be Allowed in the aggregate amount equal to $1,384,000,000, plus any accrued but unpaid interest as of the Petition Date….The Debtors shall use commercially reasonable efforts to syndicate for Cash the New Debt; provided that if the Debtors do not syndicate for Cash at least $1,418,000,000 of New Debt, after refinancing the DIP Financing, on the Effective Date, Avaya (on a reorganized basis) shall issue New Debt to Holders of Cash Flow Credit Facility Secured Claims and First Lien Notes Secured Claims in accordance with Article III.B of the Plan.”
The Court scheduled a May 25, 2017 hearing to consider the Disclosure Statement, with objections due by April 21, 2017.
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