Avaya announces capital restructuring to optimize

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Avaya announced capital restructuring to optimize the capital and financial structure

continue to operate normally in the process of asset restructuring, and continue to provide products and services to customers and partners as always

Beijing, January 20, 2017 -- Avaya, the global leader of enterprise communication software, systems and services, announced today that in order to better cope with the future, the company has launched a formal asset restructuring process. In order to promote this reorganization, Avaya submitted a voluntary application to the Southern District Court of New York in accordance with Chapter 11 of the United States Bankruptcy Code. All foreign subsidiaries, including Avaya China, are excluded from the scope of application and will continue to operate normally

avaya has obtained the $725million debtor held assets (DIP) financing promised by Citibank. With the approval of the court, the dip financing combined with the company's operating cash is expected to provide sufficient liquidity during the asset restructuring to support the company's continuing business operations

avaya CEO Kevin Kennedy pointed out that we have conducted an in-depth evaluation of various options to solve Avaya's capital structure problems. We believe that restructuring in the form of bankruptcy protection is the best way to solve this problem at present. Reducing the company's current liabilities with the help of the bankruptcy protection scheme can make Avaya's businesses fully prepared for tomorrow's success

in order to solve the company's capital structure problems, Avaya has carried out a full and comprehensive evaluation, including the intention to sell Avaya's assets including the contact center business. After consultation and extensive evaluation with the company's financial and legal consultants, Avaya's board of directors decided to focus on the company's debt, some of which will be many times higher than the structure. At this time, the sale of the contact center business will not create the maximum price for the company's customers and all stakeholders. When the operating stress exceeds the allowable stress of FRP materials, it will cause the pipeline damage value. Kennedy went on to say: This is a key step in our continuous transformation to a successful software and service business of necessary factory inspection equipment for glass fiber reinforced plastic sand pipe. Avaya's current capital structure has not changed for more than 10 years. Its original intention is to support our hardware focused business model, but our business model has evolved significantly since then. Now, in view of Avaya's debt terms and maturity, we need to restructure the company's capital structure. Our business has performed well, and we are confident that it will become stronger than ever after the end of this process, because this approach is only a turning point in our debt structure, not a change in our business strength or business model. Restructuring through bankruptcy protection can not only reduce Avaya's debt and interest costs, but also provide greater financial flexibility for future investment innovation and growth and strengthen our market competitive leadership. Most importantly, we are committed to minimizing interference with our customers, partners and employees, and we do not expect any material disruption during bankruptcy protection

Chen Wei, President of Avaya Greater China, pointed out that Avaya China's operation is normal. We are continuing to work closely with our partners in China to carry out product R & D and innovation, and are committed to bringing customers a more intelligent contact center experience and expanding the industry ecosystem. Avaya's recently launched cloud contact center solution xiaoa cloud will also provide customers with more intelligent services to help enterprises quickly respond to the challenges brought by market development

while submitting the voluntary application, the company also submitted a series of first day motions to the court to promote a smooth transition to bankruptcy protection and minimize business impact. Among other things, these motions require authorization to continue specific customer and partner projects and to continue to meet specific employee compensation and benefit obligations

for further explanation of the bankruptcy protection act and reading relevant court documents, please visit: https://

centerview partners and zolfo Cooper are the company's financial and restructuring consultants, Goldman Sachs is the company's, so the data tested will be invalidated by M & A investment banks, and Kirkland Ellis LLP is the company's restructuring consultant

about Avaya

Avaya is committed to helping the world's most important enterprises deploy key real-time communication applications. Avaya provides an excellent communication experience and is a global leader in communication. Avaya provides the most comprehensive contact center and unified communication software and services through the integration and security network provided in the client, cloud or hybrid architecture. Today's digital environment needs to support various forms of communication, and Avaya can better meet this demand. For more information, please visit: and Avaya China

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