Avaya 2023 Bankruptcy

This is the place to talk about pension related issues.

Avaya 2023 Bankruptcy

Postby remberger » Wed Feb 15, 2023 5:54 pm

Avaya’s 2023 Bankruptcy – Some observations from a non-lawyer

1) Avaya filed its second bankruptcy in Houston, not NYC like last time. For a company HQ’d in NC and incorporated in DE, I find the selection of Houston, TX to be a little odd.

2) This is a “pre-packaged” filing. Avaya and its major debtors have decided how to slice up the pie. The biggest impediment to this suit flying through quickly is the large number of law suits that are likely due to the alleged financial improprieties prior to the last time Avaya did its debt financing. Those lenders are probably part of the settlement, but lawyers are rounding up equity (shareholder) clients who may have bought or sold stock relying on information available around the time that the loans were made. (See this article in Bloomburg _ https://finance.yahoo.com/news/avaya-bo ... p_catchall ) The case is A6 Capital Management LP v Chirico, 650262/2023, New York State Supreme Court, New York County. ( https://www.docketalarm.com/cases/New_Y ... ._et_al/1/ )

3) As currently written, the prepackaged filing anticipates no further impact on employees or retirees.
[From: Case 23-90088 Document 50 Filed in TXSB on 02/14/23]
JOINT PREPACKAGED PLAN OF REORGANIZATION OF AVAYA INC. AND ITS DEBTOR AFFILIATES PURSUANT TO CHAPTER 11 OF THE BANKRUPTCY CODE

ARTICLE IV. MEANS FOR IMPLEMENTATION OF THEPLAN

O. Employment Obligations.

Unless otherwise provided herein, and subject to Article V of the Plan, all employee wages, compensation, and benefit programs in place as of the Effective Date with the Debtors shall be assumed by the Reorganized Debtors and shall remain in place as of the Effective Date, and the Reorganized Debtors will continue to honor such agreements, arrangements, programs, and plans as of the Effective Date; provided that, it is agreed and understood that the consummation of the Restructuring Transactions and the Plan and any associated organization changes shall not constitute a “change in control” or “change of control” or other similar event under any such agreement, arrangement, program, plan, or policy. For the avoidance of doubt, pursuant to section 1129(a)(13) of the Bankruptcy Code, as of the Effective Date, all retiree benefits (as such term is defined in section 1114 of the Bankruptcy Code), if any, shall continue to be paid in accordance with applicable law. On the Effective Date, the Reorganized Debtors shall (a) assume all employment agreements, indemnification agreements, or other agreements entered into with current employees; provided that it is agreed to and understood that the consummation of the Restructuring Transactions and the Plan and any associated organization changes shall not constitute a “change in control” or “change of control” or other similar event under any such agreement, arrangement, program, plan, or policy; or (b) enter into new agreements with such employees on terms and conditions acceptable to the Reorganized Debtors and such employee

4) Per agreement with the PBGC, existing non-management pensions currently held by Avaya will continue to the held by Avaya. See Exhibit I of Case 23-90088 Document 51 Filed in TXSB on 02/14/23 --DISCLOSURE STATEMENT RELATING TO THE JOINT PREPACKAGED PLAN OF REORGANIZATION OF AVAYA INC. AND ITS DEBTOR AFFILIATES PURSUANT TO CHAPTER 11 OF THE BANKRUPTCY CODE
remberger
 
Posts: 118
Joined: Sat Jun 17, 2017 5:53 am

Return to Pension

Who is online

Users browsing this forum: No registered users and 2 guests

cron