by financegrunt » Tue Apr 09, 2019 7:12 am
As I responded to a similar post on this site a week or so ago, I am not surprised at all that Avaya “management” is going to auction off the company to potential buyers including private equity firms.
With a value of $5 billion, there is obviously plenty of money to be made (or to be legally stolen) by Avaya “management” and the private equity firm(s).
Yes, it does appear to be déjà vu all over again.
And I am not surprised that Avaya’s public response to the auction approach is like the company, consistently vague, misleading and disingenuous.
The only “winners” when this auction happens will be current management and the blood sucking private equity firm(s) that win out.
And after sucking all of the cash out of the business, if bankruptcy were to ultimately happen once again, the only “winners” will be the first lien creditors leaving the general unsecured claim holders as the usual scapegoats.
And don’t kid yourself, whenever a private equity firm gets involved, it always results in backing-up the debt truck and impossibly burdening the target company.
So, get ready for the circus to begin anew and be sure to dust-off the bankruptcy template.
Someone should also call the PBGC and let them know that the Avaya pension plan for represented employees is no doubt coming their way at some point.
And remember Gordon Gekko’s quote, “The point is ladies and gentlemen that greed, for lack of a better word, is good”
Oh, I am so very glad that I am through with Avaya.