As we reported early this year Avaya filed for bankruptcy under Chapter 11 of the US Bankruptcy code.
Fast forward to today and there has been two big announcements:
A new plan support agreement
Vying for the most complicated Press Release ever released, Avaya have made a number of announcements including:
- The reduction of Avaya’s debt by more than $3 billion from pre-filing levels;
- The settlement and transfer to PBGC of Avaya’s obligations under the APPSE;
- Avaya’s continued support of its obligations under the Avaya Pension Plan (“APP”); and
- Initiation of steps to enable Avaya to emerge from chapter 11 as a public company.
Read the Press Release on Avaya’s website.
Avaya’s President of Avaya International (EMEA & APAC), Nidal Abou-Itaif was excited to announce that “Today, we’ve made a vital step forward in concluding our restructuring journey. The wider journey of transformation is an ongoing one – and we take immense pride at the level of confidence and support that we are receiving from customers and partners that we will succeed in both”.
For the thousands of customers that use Avaya in their call centres and have been worried about their future viability it sounds like things are heading in the right direction.
New Leadership Transition
Avaya today announced that it has appointed Jim Chirico, currently Avaya’s Chief Operating Officer and Global Sales Leader, as Chief Executive Officer, effective October, 1 2017. Kevin Kennedy, Avaya’s current President and Chief Executive Officer, will retire as CEO and a member of the Board of Directors but has agreed to remain as an advisor to the company. Mr. Chirico will join the Board.
“I’m excited to have the opportunity to lead Avaya at a critical point in its history. I will work closely with Kevin over the next two months to ensure a smooth transition as we also continue the process to emerge from chapter 11,” said Mr. Chirico. “We will enter this next chapter with unique strengths and a new capital structure, and I look forward to working with the talented Avaya team to accelerate our long-term success. Kevin has been my mentor and coach for the past nine years, and I am grateful to be his successor. We all thank him for his leadership and success in transforming Avaya and navigating the debt restructuring process.”
Read the full Press Release here.