Avaya filed with the U.S. Bankruptcy Court a motion seeking entry of a third order extending the Debtors’ exclusive periods to file a Chapter 11 Plan and solicit acceptances thereof through and including November 30, 2017 and January 31, 2018, respectively.
The motion explains, “Since their last exclusivity extension was granted on July 26, 2017, the Debtors have successfully negotiated a Stipulation of Settlement Between the Debtors and Pension Benefit Guaranty Corporation resolving the treatment of the Debtors’ qualified pension liabilities; completed successful negotiations with the Official Committee of Unsecured Creditors through improved recoveries and additional modifications to their Amended Plan; obtained Court approval with respect to their Disclosure Statement for the First Amended Joint Chapter 11 Plan of Reorganization and Plan Support Agreement (the ‘PSA’).”
In addition, “This progress has been achieved against the backdrop of what all parties have recognized are large, complex chapter cases involving billions of dollars of funded debt and legacy liabilities, global operations, thousands of employees and retirees, and a diverse set of stakeholder constituencies. The brief exclusivity extension requested herein will permit the Debtors to build on this progress without substantial disruption or delay that would result if parties were permitted to file competing plans at this critical juncture. On the one hand, continued exclusivity will permit the Debtors to continue forward in preparation for their November 15, 2017 confirmation hearing. And on the other hand, continued exclusivity will foster the Debtors’ ability to engage creditor constituencies to further develop consensus around the Amended Plan if at all reasonably possible.”
The Court scheduled a September 13, 2017 hearing to consider the motion, with objections due by September 6, 2017.
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