Kevin Kennedy, President and Chief Executive Officer of Avaya
“We are very pleased to have reached these agreements with these key stakeholders in our restructuring process, the Ad Hoc First Lien Group and PBGC.”“This is an important milestone in the chapter 11 process and marks Avaya’s progress toward our goal of emerging a stronger, more competitive company. Further, we believe this is a positive and beneficial outcome for our stakeholders.With a creditor-supported and confirmable Plan of Reorganization in place, we now have a clear and viable path to emerge from chapter 11 in the near term.”Source: Commstrader
Avaya & Pension Benefit Guaranty Corp
- First lien debt holders receive payment before all other debt holders.
- The reduction of Avaya’s debt by more than $3 billion from pre-filing levels.
- This restructuring involves three different Avaya pension plans.
- 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”).
- Initiation of steps to enable Avaya to emerge from chapter 11 as a public company.