Telecommunications company Avaya files for bankruptcy

They say that in combination with cash from operations, this is expected to provide sufficient liquidity during the chapter 11 cases to support the company's continuing business operations and minimize disruption.

The company's received a big vote of confidence for the move from Citibank, which underwritten a $725 million financing facility to help the company through the re-jigging of its finances.

"The company has taken a decisive step to rightsize its balance sheet", Pat Nash, one of the company's attorneys, told Judge Stuart Bernstein at the U.S. Bankruptcy Court for the Southern District of NY.

WILMINGTON, Del Telecommunications company Avaya Inc filed for Chapter 11 bankruptcy on Thursday to reduce its debt load of about $6.3 billion but said it would not sell its call center business, which it had tried to do previous year. But the news does indicate how much the communications business has advanced in recent years as it keeps in step with changes-powered by cloud and mobility software and services-in the way employees communicate and collaborate in the new work-wherever-you-want world.

"This result mirrors worldwide performance, with global revenue reaching US$958 million, up US$76m from the previous quarter, and EBITDA increasing by 25.3% to US$223m in the same period", the Avaya ANZ says.

As part of Avaya's plan to address its capital structure, the company said it evaluated expressions of interest in various Avaya assets, including its contact center business. Avaya said it would find ways to reduce its debt load of about $6.3 billion but also revealed that it would not sell its call center business, which it had attempted to sell to Genesys for $4 billion last August.

The company said in a Securities & Exchange Commission filing on Thursday that it received a $3.9 billion bid from an unnamed suitor for the business but did not believe the bid was "actionable" and terminated the sale process. In 2009, Avaya acquired Nortel Enterprise Solutions to expand into networking. It was taken private in 2007 for $8.2 billion by private equity firms Silver Lake Partners LP and TPG Capital LP. Software and services accounted for 74.9 percent of total revenue, up from 71.3 percent for fiscal 2015. The telecom company on the same day revealed in a.

Avaya agreed to a January deadline to agree with credits in order to address its debt or default. "It has been happening with in the contact center space for the last few years".

Avaya will operate as usual during the Chapter 11 process.

Chapter 11 only impacts Avaya's United States operations.

Avaya today also announced financial results for the fourth fiscal quarter and fiscal year ended September 30, 2016.

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