Avaya approaching a second bankruptcy?

Have something general to talk about? This is the place.

Avaya approaching a second bankruptcy?

Postby remberger » Thu Dec 22, 2022 4:02 pm

See the attached link. Avaya is close to filing for a second bankruptcy.

https://www.reuters.com/business/avaya- ... 022-12-16/


For management retirees, I believe the only thing we have left that is at risk is our life insurance benefits. Reading the last explanation of benefits (just received this month), it appears to this novice that the bulk of the reserve was run down last year. Since this is a "voluntary" program on the part of Avaya, Avaya has claimed in the past that could theoretically terminate this benefit at any time without entering bankruptcy. I think this benefit is at extreme risk.

For non-management retirees, their pensions are at extreme risk. To the extent that their pensions are qualified pensions, they are guaranteed by the PBGC up to a maximum monthly benefit that varies by age and years of service. Qualified pensions in excess of the PBGC maximum cannot be recovered in bankruptcy. Some non-management retirees may receive both qualified and non-qualified pension payments. (You can tell if you have a non-qualified pension if you receive a W-2 for a portion of your pension in addition to your 1099-R). The non-qualified portion of your pension is not guaranteed by the PBGC. If Avaya seeks to terminate the non-management pension plan, you can get some small settlement from bankruptcy for the non-qualified portion of your pension. If Avaya files for bankruptcy it is critical for non-management employees to request to be their own "class" of debtors. Do not get lumped into the group of general unsecured creditors. (That is what happened to the management employees and it was a mistake). Request your own class as soon as Avaya files. Also, do not count on the PBGC to protect your interests.

Bob Emberger
remberger
 
Posts: 118
Joined: Sat Jun 17, 2017 5:53 am

Return to Just Chatting

Who is online

Users browsing this forum: No registered users and 1 guest

cron