Avaya Bankruptcy

Avaya files for chapter 11

When Avaya filed for bankruptcy on January 19th, 2017, they were probably one of the most hopeful companies to have ever filed because they seemed more optimistic than ever.

Most companies/business would let their morale and for that matter, the morale of their employees, sink to the floor but not Avaya. They made several promises that only inspired faith and a belief that they were going to come back stronger than ever and while they were rebuilding, they would not let all that they, their partners, and employees, had worked tirelessly for, fall by the wayside. It did not hurt them that they were eligible for Debtor-In-Possession (DIP) reimbursement which helped keep Avaya ahead of the game and allow them to stay functioning as if nothing had really happened.

Avaya Phone System Bankruptcy

Now, here is what Avaya vowed would happen within the company during the Chapter 11 filings and proceedings:

  • Business was to commence per usual in all aspects.
  • This filing would only aim to make the company stronger.
  • In terms of the customers, employees, and partners, the impact felt by filing Chapter 11 would be extremely minimal; it would feel like a minor blip in the road back to success.
  • There would be no halting when it came to the products and services as the flow of production would keep going strong, showing Avaya was and would still be extremely dependable. In summation, everything was to stay the same; that was the goal and it was a very important one, at that and more importantly, it showed that this was a well-thought out filing.

Avaya knew that having a DIP financing of $725 million dollars would help ensure that they stuck to their initial mission, post-filing and that they would not let anyone down, unnecessarily. They were able to mostly keep their promises and are looking at either buy out and if not that, a successful continuation of acquiring more products and such. They have been able to stay more than above water with a clear light at the end of the tunnel and are still actively involved in investing in product development and there are no signs of them stopping anytime soon.

This is a quick statement that was released in regards to their determination and desire to rebound:
“Every chapter 11 process is unique. In the case of Avaya, we have a healthy operating business that has been generating positive cash flow and setting records for operating profitability, as our product mix has shifted to 75% software and services.”