Avaya exits bankruptcy protection after completing restructuring plan

Human hands working with documents at desk and signing contrac
Avaya exits Chapter 11 protection as it completes its debt restructuring process. (Image: Getty Images)

Avaya has completed its debt restructuring process and has emerged from Chapter 11 less than a year after filing for bankruptcy protection.

The company said in a statement that it has reduced its prior debt load by about $3 billion and now has over $300 million in cash on its balance sheet.

“This is the beginning of an important new chapter for Avaya,” said Jim Chirico, Avaya’s president and CEO in a release. “In less than a year since the commencement of our Chapter 11 restructuring, Avaya has emerged as a publicly traded company with a significantly strengthened balance sheet.”

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RELATED: Avaya gets court approval for restructuring plan, sets stage to exit Chapter 11 by year-end

Like other enterprise-facing vendors such as Extreme Networks, Avaya also sees an opportunity to become a company focused on software-based networking solutions.

“We have the flexibility we need to invest in the large and growing contact center and unified communications markets as we complete our transformation to a software, services and cloud solutions provider,” Chirico said.

Avaya is now taking steps to get listed on the New York Stock Exchange. The company expects to have approximately 110 million shares outstanding upon emergence.

In August, Avaya reported sequentially flat revenues of $803 million for its third fiscal quarter to end of June. Later in October it revealed that it expected revenues of $787 million to $791 million for the three months to September. The company also unveiled a new board of directors in December with Chirico continuing his role as CEO.

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