SPS / Avaya Updates

SPS has supported clients through changes, disruptions and evolution within the communications technology marketplace. With the recent announcement regarding Avaya filing for Chapter 11 protection, our clients remain at the center of our focus. As we have for nearly three decades, SPS will provide trusted guidance and superior technical capabilities to ensure the best business outcomes.

We have confidence in Avaya’s technology and the value it brings to our clients. Rest assured, we are here to support our clients through changes that may come as a result of Avaya’s efforts to rework its capital structure. As a systems integrator with a wide breadth of competencies across solution areas, SPS is highly capable of helping clients find success regardless of the path forward they choose to take.

View the sections below for further details about the implications of Avaya filing for Chapter 11 protection. Check back soon for dates to SPS's upcoming 10-city tour, where we will address questions face-to-face.

            

Avaya Restructuring Progress Report
Kevin Kennedy highlights how Avaya continues to make significant progress in the debt restructuring process that began in January of this year. (April 28, 2017)

Avaya Enters Into Asset Purchase Agreement with Extreme Networks for the Sale of Avaya's Networking Business
News release (March 7, 2017)

Avaya: Strong Now, Stronger in the Future
View greater details about Avaya's action to address its capital structure by filing for Chapter 11 protection.

Avaya Financial Update January 2017
Provides an overview of the steps Avaya is taking to improve its balance sheet and showcases Avaya's operational improvements.

Avaya Inc. Files for Chapter 11 Protection
News release

Video Update from Avaya's Kevin Kennedy
A video message to customers from Avaya's President & CEO (registration required)

Avaya Reports Fourth Quarter and Fiscal Year 2016 Financial Results
News release 

IAUG’s Response to the Avaya Announcement
A statement on what the Avaya announcement means for IAUG

Chapter 11 protection is used by businesses that need time to restructure their debts and obligations. Businesses create a restructuring plan that allows them to repay creditors in a feasible and fair manner while continuing to operate normally, without disruption to their services. Many companies have filed for Chapter 11 protection and continue to operate successfully today, including General Motors, Marvel Studios and United Airlines. Businesses emerge with a sustainable capital structure and are able to focus on and invest in the future.

How did this happen? What is next for Avaya?

Avaya has long-term debt and a substantial annual interest associated with it. Resolving this hurdle it is an essential step to unlocking the tremendous value the company has created. The intent of Avaya’s chapter 11 filing is to:

  • Restructure its balance sheet to significantly reduce its debt and interest payments;
  • Exchange debt for equity (which will change the ownership of the company); and
  • Emerge from bankruptcy stronger and more competitive than ever.

Is Avaya going out of business?

No. Avaya’s customers, partners and employees are not expected to experience material disruption as a result of the chapter 11 filing. Its corporate offices, distribution and support centers remain open on normal schedules and will continue to operate as usual.

When does Avaya expect to emerge from chapter 11?

The timing of the outcome is dependent on negotiations with creditors and the subsequent approval of the Court, making it difficult at this point to project a timeframe for emerging from chapter 11, but the Company’s advisors are working diligently to complete this process as quickly as possible.

Will Avaya be discontinuing any products or services?

Avaya expects to continue to deliver the products and services it offers today while introducing new products and services, as well.

For more information, view Avaya’s Customer FAQs.

For more information on Avaya's announcement of the sale of its Networking business, view Avaya's Networking FAQs.

Have a question that wasn't covered? Contact SPS to receive a quick response from our experts!

SPS Webinar: Response to Avaya Chapter 11 Announcement
January 24, 2017

Mike Taylor, SPS CTO and Avaya Solution Area Leader, heads a discussion on the recent announcement that Avaya has filed for Chapter 11 protection. The discussion includes the SPS perspective and guidance on how the Avaya announcement affects clients' communication strategy and roadmap, as well as a Q&A session with clients to address top concerns.

Avaya Restructuring Progress Report
April 28, 2017

Kevin Kennedy highlights how Avaya continues to make significant progress in the debt restructuring process that began in January of this year. 

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