Avaya bankruptcy yet again

[financegrunt]

So, Avaya once again files for Chapter 11 bankruptcy, about 5 years after emerging from the previous bankruptcy

Avaya President and CEO Alan Masarek, who has been at the helm of the company for a stellar six months, said “The actions we are taking are designed to accelerate our transformation and make Avaya an even stronger partner to our customers and strategic and channel partners—we expect to emerge from this process with one of the strongest balance sheets in our industry, significantly reduced debt and substantial additional liquidity to drive the business forward.”

Not surprisingly, Avaya is handing over ownership of the ailing company to secured creditors in bankruptcy in order to reduce debt and get access to additional liquidity.

Thus, Avaya stock is now worthless.

Existing equity holders should note that the NYSE is prersently commencing delisting proceedings with the common shares likely to start trading on the Pink Sheets this week.

So common equity holders will be wiped out at the end of the restructuring process as clearly stated in the company's Public Equity Investors FAQ.:

What will happen to Avaya common stock when the Company emerges from this process? Will I receive any compensation if the stock is cancelled?

Avaya’s answer: Based on the terms of the Restructuring Support Agreement, we do not expect shareholders to receive any recovery at the end of the court-supervised process, consistent with legal priorities. We carefully considered this outcome in approaching this process, and we are confident we are positioning Avaya to deliver greater value over the long term.

Should I sell my stock now?

Avaya’s answer: Again, based on the terms of the Restructuring Support Agreement, we do not expect shareholders to receive any recovery at the end of the court-supervised process, consistent with legal priorities. We recognize that individual shareholders, including many of our employees, will be hurt by the expected cancellation of our public stock. Please know that we put a lot of thought into the financial restructuring, and the steps we are taking are necessary to position the business for long-term success.

It appears that the continuing law of evolution in corporate America is survival of the unfittest.

As I recall, Gordon Gekko once said that “greed, for lack of a better word, is good. Greed is right. Greed works.”

Today, Gordon would no doubt observe that, “Back in 2017, Avaya was a dog. Now it’s nothing but a dog with different fleas.”

Finance Grunt

PS: I never, ever admit to anyone that I retired from Avaya.

[dwhisenant]

Just got the Notice of Non-Voting status and Opt out forms for the bankruptcy. Not sure why since the only thing I have left from Avaya is the Life Insurance. At any rate I don't see any reason to respond to the Opt out form, I don't see reason to do that. Does anyone have a reason to vote to Opt out versus doing nothing.

Don

[remberger]

Don,

I would hold off a few days. You have until March 17 to opt out. I have sent an e-mail to Kirkland and Ellis to see if Management Retiree Life insurance will be impacted. I will post here if I get a response. If I don't hear back from K&E by next Friday, I intend to file a claim at lccllc.net/avaya

Bob Emberger

Here is the current timeline:

Event Date : February 9, 2023
Voting Record Date : February 14, 2023
Solicitation Commencement Date Voting Deadline
Opt-Out Deadline : March 17, 2023, at 4:00 p.m., prevailing Central Time
Objection Deadline : March 17, 2023, at 4:00 p.m., prevailing Central Time March 17, 2023, at 4:00 p.m.
Combined Hearing : March 22, 2023 at 10:00 a.m., prevailing Central Time

[dwhisenant]

thanks Bob for sending the letter. They have already stated they are keeping the Union pension and benefits remain unchanged, so I am hoping that implies our Life Insurance will continue to be funded.

Don

[rpuckett23]

thanks again for the updates

getting old a bitch

have fun folks