According to the latest reports, Avaya has filed a motion with the U.S. Bankruptcy court, asking for a third order which will extend the exclusive debtors plan, and allow the company to solicit acceptances through both November 30th, 2017 and January 21st, 2018.
The latest exclusivity extension came not so long ago, on the 26th of July 2017. Since that time, Avaya has been able to successfully negotiate a document known as a “Stipulation of Settlement” with the Pension Benefit Guaranty Corporation. Avaya’s motion outlines that since July, they have been able to resolve issues with qualified pension liabilities and add improved recoveries and further modifications to their plan of emergence from Chapter 11.
Avaya Pushes Ahead
The journey to a world outside of Chapter 11 bankruptcy hasn’t been a simple one for Avaya. It seems that they’ve had to go through endless complicated discussions with lien holders and courts, while partners and customers sit waiting for news.
Overall, the case has been incredibly complicated, with billions of dollars of debt to think about, global operations, legacy liabilities, and thousands of retirees, employees, and stakeholders to consider. In other words, it’s not much of a surprise that Avaya would need to consider another extension to make sure that everything is fully in place.
With their brief extension for exclusivity, Avaya is hoping to build upon the progress that they’ve already made into emergence from Chapter 11, without having to worry about too much delay or disruption that would otherwise be caused if competing plans were filed at this time.
The Extension is a Positive Step
Essentially, the continued exclusivity extension for Avaya will mean that the company can continue to push forward in preparation for a November 15th hearing while allowing them to engage creditors and develop further consensus around their new plan for chapter 11.
So far, the US courts have scheduled a hearing to consider the motion on the 13th of September. Any objections need to be entered by the 9th of September. Stay tuned for more information about Avaya’s bankruptcy experience as it unfolds.
The Avaya Story so far:
- The Latest on Avaya’s Emergence from Chapter 11 Bankruptcy
- Avaya’s Third Quarter Financial Results: All the Crucial Numbers
- Avaya’s Latest News from a UK Perspective: CommsTrader Exclusive
- What next for the new Avaya? CommsTrader Exclusive
- Avaya Files a Plan with Bankruptcy Court
- Avaya Slammed for Bankruptcy Bonus Plans
- Avaya Update: After Chapter 11 What will Happen to Avaya in the UK?
- Avaya Seeks $3.7 Million for Executive Bonuses During Bankruptcy
- Avaya Networking Sell Off Approved By Bankruptcy Court
- Avaya Could Emerge From Bankruptcy By Summer
- Could Avaya’s Debt be Too Much to Handle?
- Avaya enters Chapter 11 – a very sad day in Comms