Avaya Hits Another Milestone in Chapter 11 Exit

Avaya said today that it has hit another significant milestone in its journey out of Chapter 11 bankruptcy, announcing an agreement with its major creditors' groups that the company said will enable an exit from Chapter 11 in 2017.

The agreement, called the Global Resolution, has garnered support from holders of more than two-thirds of both Avaya's first lien and second lien debt, the company said in a press release.

Avaya also announced that it has launched the process for funding the $2.9 billion of debt it plans to hold when it emerges from bankruptcy. . The reduced debt load, which is about half of what the company faced when it entered Chapter 11, will save it $200 million a year in interest expenses, Avaya said.

In the company statement, Avaya President and CEO Jim Chirico called the Global Resolution "one of the most significant milestones in our Chapter 11 process.

"With a consensus-backed Plan and exit financing commitments in hand, we are closer than ever to emerging as a stronger, more competitive company," he continued. "These developments are good news not only for Avaya, but for our customers and partners as well."

If the amended plan that includes the Global Resolution is approved, and other necessary approvals are granted, "Avaya expects to complete its restructuring and emerge from Chapter 11 protection in 2017," the company said.

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