The U.S. Bankruptcy Court issued an order confirming Avaya’s Second Amended Joint Chapter 11 Plan of Reorganization.
As previously reported, “The Debtors have modified the First Amended Plan to reflect the terms of the Modified Global Plan Settlement among the Mediation Parties. The Second Amended Plan, among other things, provides that the First Lien Debt Claims, Second Lien Notes Claims, PBGC Claims, and General Unsecured Claims will receive the treatments set forth in Article III of the Second Amended Plan. The Second Amended Plan shall apply as a separate plan of reorganization for each of the Debtors, and the classification of Claims and Interests set forth in the Plan shall apply separately to each of the Debtors.”
The Plan provides holders of first-lien debt with 90.5% of stock in the reorganized company and holders of second-lien notes with a pro rata share of 4% of stock and warrants for an additional 5.1% of the shares. Avaya projects to have approximately $2.925 billion of funded debt and a $300 million senior secured asset-based lending facility available upon emergence from Chapter 11 protection. Jim Chirico, Avaya’s president and chief executive officer, comments, “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.”
Avaya expects to emerge from bankruptcy by year end. This telecommunications services provider filed for Chapter 11 protection on January 19, 2017, listing $6.9 billion in pre-petition assets.
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