Avaya Announces Plan Support Agreement
(Thomson Reuters ONE) -
Files Confirmable Amended Plan of Reorganization and Disclosure Statement With
Support of Major Stakeholders; Seeks to Emerge from Chapter 11 in Fall 2017
NEW YORK, NY--(Marketwired - August 07, 2017) - Avaya today announced that it
has entered into a Plan Support Agreement (the "PSA") with holders of over 50%
of its first lien debt, including certain members of the Ad Hoc Group of First
Lien Creditors (the "Ad Hoc First Lien Group"). In addition, the company has
reached agreement with U.S. Pension Benefit Guaranty Corporation ("PBGC") to
provide for the termination of the company's obligations under the Avaya Pension
Plan for Salaried Employees ("APPSE") and the related transfer of those
obligations to PBGC, with the support of the Ad Hoc First Lien Group. Avaya has
filed an amended plan of reorganization (the "Amended Plan") and disclosure
statement reflecting the terms of these agreements.
The PSA results from extensive negotiations among Avaya and members of the Ad
Hoc First Lien Group. The Holder Parties (as defined in the PSA) who executed
the PSA collectively hold over 50% of Avaya's first lien indebtedness. These
parties have agreed, among other things, to support the restructuring
transactions contemplated by the Amended Plan, vote in favor of the Amended Plan
when solicited in accordance with applicable law and not take any action
inconsistent with the PSA or the transactions contemplated thereby. As a result,
once the company has received approval from the Court to solicit creditor votes
and receives the requisite votes, the Amended Plan is confirmable. Key terms of
the Amended Plan include:
* The reduction of Avaya's debt by more than $3 billion from pre-filing
levels;
* 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"); and
* Initiation of steps to enable Avaya to emerge from chapter 11 as a public
company.
"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," said Kevin Kennedy, President and Chief Executive Officer of Avaya. "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."
Avaya will continue to work to build consensus and gain the support of other
stakeholders. Avaya will seek approval of its revised disclosure statement and
the PSA at its scheduled court hearing on August 23, 2017.
This press release is not intended as solicitation for a vote on the Amended
Plan and nothing herein is or should be considered a solicitation of votes for
the acceptance of the Amended Plan or any plan of reorganization for the
purposes of Bankruptcy Code sections 1125 and 1126 or otherwise. The company
will not solicit acceptances of the Amended Plan from any party until such party
has been provided with copies of a disclosure statement containing adequate
information as required by Bankruptcy Code section 1125. The full terms of the
Amended Plan and revised disclosure statement, as well as the related pleadings,
are available online at: https://cases.primeclerk.com/avaya.
Centerview Partners LLC and Zolfo Cooper Management, LLC are Avaya's financial
and restructuring advisors and Kirkland & Ellis LLP is the company's
restructuring counsel.
The Ad Hoc First Lien Group is represented by Akin Gump Strauss Hauer & Feld LLP
and PJT Partners, as legal and financial advisors, respectively.
About Avaya
Avaya enables the mission critical, real-time communication applications of the
world's most important operations. As the global leader in delivering superior
communications experiences, Avaya provides the most complete portfolio of
software and services for contact center and unified communications -- offered
on premises, in the cloud, or a hybrid. Today's digital world requires some form
of communications enablement, and no other company is better positioned to do
this than Avaya. For more information, please visit www.avaya.com.
Cautionary Note Regarding the Chapter 11 Cases
The Company's security holders are cautioned that trading in securities of the
Company during the pendency of these Chapter 11 cases will be highly speculative
and will pose substantial risks. It is possible some or all of the Company's
currently outstanding securities may be cancelled and extinguished upon
confirmation of a restructuring plan by the Bankruptcy Court. In such an event,
the Company's security holders would not be entitled to receive or retain any
cash, securities or other property on account of their cancelled securities.
Trading prices for the Company's securities may bear little or no relation to
actual recovery, if any, by holders thereof in the Company's Chapter 11 cases.
Accordingly, the Company urges extreme caution with respect to existing and
future investments in its securities.
Cautionary Note Regarding Forward-Looking Statements
This document contains certain forward-looking statements. These statements may
be identified by the use of forward-looking terminology such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "intend," "may," "might,"
"our vision," "plan," "potential," "preliminary," "predict," "should," "will,"
or "would" or the negative thereof or other variations thereof or other
comparable terminology and include, but are not limited to, continuing
negotiations with creditors not party to the PSA and timing of emergence from
chapter 11. We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we believe these
expectations, assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known and unknown
risks and uncertainties, many of which are beyond our control, including, but
not limited to: the actions and decisions of our creditors and other third
parties with interests in the Chapter 11 cases; our ability to maintain
liquidity to fund our operations during the Chapter 11 cases; our ability to
obtain Bankruptcy Court approvals in connection with the Chapter 11 cases; our
ability to consummate any transactions once approved by the Bankruptcy Court and
the time to consummation of such transactions; and other factors affecting the
Company detailed from time to time in the Company's filings with the SEC that
are available at www.sec.gov. These and other important factors may cause our
actual results, performance, or achievements to differ materially from any
future results, performance, or achievements expressed or implied by these
forward-looking statements. For a list and description of such risks and
uncertainties, please refer to Avaya's filings with the SEC that are available
at www.sec.gov and in particular, our 2015 Form 10-K filed with the SEC on
November 23, 2015. We caution you that the list of important factors included in
our SEC filings may not contain all of the material factors that are important
to you. In addition, in light of these risks and uncertainties, the matters
referred to in the forward-looking statements contained in this document may not
in fact occur. Avaya disclaims any intention or obligation to update or revise
any forward-looking statements as a result of new information, future events or
otherwise, except as otherwise required by law.
Contact Information
Media Contacts
Sard Verbinnen & Co
John Christiansen / David Isaacs / Leah Polito
415-618-8750
Avaya-SVC(at)sardverb.com
or
Richard Fly
978-671-3293
flyr(at)avaya.com
Investor Contact
Peter Schuman
669-242-8098
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Avaya via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 07.08.2017 - 11:30 Uhr
Sprache: Deutsch
News-ID 555457
Anzahl Zeichen: 9242
contact information:
Town:
Santa Clara
Kategorie:
Business News
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