NEWS & EVENTS
Avaya Announces Plan Support Agreement Executed by Holders of More than Two-Thirds of First Lien Debt
NEW YORK, NY – September 12, 2017 – Avaya Inc. (“Avaya” or the “Company”) announced today that its First Amended Plan Support Agreement dated August 6, 2017 (the “PSA”) has now been executed by holders of over two-thirds in amount of the total amount of its First Lien Debt (as defined in the PSA)—up from more than 50% when the PSA was initially announced—including substantially all of the members of the Ad Hoc Group of First Lien Creditors (the “Ad Hoc First Lien Group”).
Among other things, the PSA requires the parties who sign it to vote in favor of the First Amended Chapter 11 Plan of Reorganization of Avaya Inc. and Its Debtor Affiliates, dated September 8, 2017 (the “Amended Plan”), when solicited in accordance with the Bankruptcy Code. The Company continues to believe that, once it has completed solicitation of votes and received the requisite votes, the Amended Plan is confirmable.
The Bankruptcy Court approved the Disclosure Statement with respect to the Amended Plan on August 25, 2017, clearing the way for Avaya to begin soliciting votes for the Plan. A hearing for the Bankruptcy Court to consider confirmation of the Amended Plan is scheduled for November 15, 2017.
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 LP, as legal and financial advisors, respectively.
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 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.
Sard Verbinnen & Co
John Christiansen / David Isaacs / Leah Polito