We thought we would share with you the fantastic news from one of our key technology partners as they successfully emerge from Chapter 11.
Avaya are private-equity owned (Silver Lake Partners and TPG Capital) and valued at between $6bn and $10bn. Following years of profitable trading Avaya were struggling to offset interest debt and so in early 2017 made the decision to file for voluntary bankruptcy protection under Chapter 11 in the United States.
The objective of filing was to facilitate a debt restructure to remove the current investment shackles and in turn to enable Avaya to continue to channel a higher percentage of trading profitability into product and service R & D.
Avaya achieved US corporate history by swiftly entering and exciting Chapter 11 in less than a year. An impressive achievement.
“This is the beginning of an important new chapter for Avaya,” enthused Jim Chirico, Avaya’s President and CEO.
In less than a year since the commencement of Avaya’s Chapter 11 restructuring, Avaya has emerged as a publicly traded company with a significantly strengthened balance sheet.
According to Chirico the reduction of Avaya’s debt will improve annual cash flow by approximately $300m compared to fiscal 2016.
Avaya plans to invest in the contact centre and unified communications markets as it completes its transformation to a software, services and cloud solutions provider.
Evoke are working on two very exciting case studies, the first shares the journey of one of our customers that has become one of the first Avaya pioneers to migrate to brand new virtualised technology and secondly to demonstrate the benefits of one of our large UK customers that has embraced and benefited from the flexibility and ROI of implementing an Avaya video solution. We hope to share these with you in our February newsletter