March 2023 132-S-100 Exam Dumps

Avaya Inc., the veteran unified communications company, said this week that it’s filing for Chapter 11 bankruptcy protection for the second time in its history, while announcing a plan that will slash $2.6 billion of debt from its balance sheet.

The company’s filing in a Texas court revealed that it has agreed a deal with its creditors. It added that the restructuring plan had “overwhelming support” from more than 90% of its secured lenders.

Through the restructuring plan, it will “eliminate more than 75% of its debt,” the company said. As a result, its total liabilities will shrink from $3.4 billion now to about $800 million, allowing it to continue running its business.

Avaya said in its filing that “revenues from capex-based purchases (software license and support and hardware) have continued to decline over the past several years, consistent with industry trends and customers’ preference to shift towards cloud-based solutions.”

The situation grew worse for Avaya when its subscription business first began to slow during fiscal 2023. The company managed to raise $600 million in financing last July, but even with that funding, it was unable to turn things around.

Avaya’s bankruptcy has been an option on the table for some time. Last August, the company warned that it had “substantial doubt” about its ability to continue operating as a going concern, saying it would miss its third-quarter fiscal 2023 revenue targets by some distance.

That came after the company hired Alan Masarek (pictured) as its new chief executive officer in July. He had previously pulled Vonage America LLC from the brink of bankruptcy before going on to sell it to Telefonaktiebolaget LM Ericsson AB.

In a statement announcing the bankruptcy, Masarek said he joined Avaya to strengthen its capital structure and realize its business transformation. “We are excited to move ahead as a well-capitalized company with one of the strongest balance sheets in our industry that includes substantial cash to invest in our own success,” he said of the plan.

Avaya was founded back in 2000 after spinning off from Lucent Technologies Inc. and debuted on the stock market later that year. In 2007 it became a private company in an $8.2 billion deal led by Silver Lake Partners and TPG Capital. That appears to be when its problems started, as it remained a private entity for a full decade until declaring bankruptcy for the first time in January 2017. After emerging from that process, it went public again at the end of the year.

The company is a major player in the unified communications technology business, and it’s also involved in networking. It started out as a provider of communications, and later, networking hardware. But for the last six years has been pushing its cloud contact center and collaboration software.

Enterprises use its software to manage their contact centers and to enable business collaboration. It has established a strategic partnership with RingCentral LLC too, with that company helping to develop and sell its cloud-based offerings. RingCentral is also a major financial backer of Avaya, having invested $500 million in the company in 2019.

Avaya’s bankruptcy highlights the challenges faced by traditional hardware firms as they pivot to selling software-based products as-a-service. It’s a slow process that involves a radical redesign of the company’s core offerings and business model, and clearly it doesn’t always work out as planned.

Hyoun Park, an analyst with Amalgam Insights, told SDxCentral that Avaya also missed a big opportunity when the COVID-19 pandemic helped to accelerate digital transformation. At the time, the collaboration and contact center markets were growing rapidly, but Avaya’s debt obligations “prevented it from executing in these areas,” he said.

Avaya said it believes it will emerge from its latest bankruptcy proceedings in a much healthier state. It said it will exit bankruptcy in 60 to 90 days as a private concern armed with a fresh $780 million in funding that will be used to invest in growing its business.

Most likely, Avaya’s debt restructuring has been in the works for some time, and it could turn out to be a smart move that sets the company up for its next phase of growth, said Liz Miller of Constellation Research Inc.

“Now, arguably, they hit send on that cloud communications strategy a few years too late,” Miller added. “But, they are closing the gap with their Avaya Experience Platform and the Avaya Cloud Office offerings. What we will be keeping an eye on is how they continue to deliver on their announced technology innovations and roadmaps.”

Analysts were divided over the future prospects for Avaya. Charles King of Pund-IT Inc. told SiliconANGLE that in addition to the fresh funding, Avaya possesses some valuable intellectual property assets too, owning more than 4,000 existing and pending technology patents.

“One interpretation of its lenders’ willingness to support the restructuring plan is that they believe Avaya can be rebuilt into a functional, profitable business again,” King said. “Alternatively, it could be that the new funding will enable Avaya to keep operating and support its existing customers and suppliers while its owners look for ways to profitably sell off its assets. Or we could see a combination of both approaches, resulting in Avaya emerging as a leaner and more focused vendor. In any case, the company’s long and strange journey doesn’t appear to be over yet.”

Rob Enderle of the Enderle Group was less convinced about Avaya’s prospects, however. He told SiliconANGLE that Avaya is one of the last surviving remnants of yesteryear’s telecommunications industry and has struggled to reinvent itself for the modern age.

“It has historically been undermarketed, and given the need to change its image from an obsolescent telecom firm to one that is more forward-looking, it continues to struggle to be relevant, which doesn’t bode well for its long-term future,” he said. “Avaya looks like a company that is running out of time.”

Photo: Avaya/Facebook

Feb 14 (Reuters) - Avaya Holdings Corp (AVYA.N) has filed for Chapter 11 bankruptcy and secured a financing of $780 million as it restructures its business, the IT firm said on Tuesday.

Avaya said upon completion of the restructuring process it will reduce its total debt by more than 75%, from nearly $3.4 billion to about $800 million.

The new capital is "expected to provide substantial liquidity to support Avaya during the process and beyond," it said.

The cloud communications company added it would continue to serve its customers and partners without interruption and expects to complete the process in 60 to 90 days.

Avaya had said there was substantial doubt about its ability to continue as a going concern in light of a debt maturity in 2023, according to a Wall Street Journal report in December, which cited people familiar with the matter.

Earlier in September, Avaya has also announced restructuring, including job cuts, to reduce costs. Avaya's shares have fallen nearly 99% last year.

Evercore Group is serving as financial advisor to Avaya for the process.

Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.

Avaya Holdings Corp. on Tuesday filed for chapter 11 for the second time in six years as it struggles to transform itself from a traditional office telecommunications equipment business into a subscription-based software provider.

The company said it filed in the U.S. Bankruptcy Court in Houston with a plan supported by most senior lenders to cut its debt by more than 75%, to roughly $800 million from $3.4 billion, and turn the page on an earnings miss last year that depressed the prices of its debt and stock.

Avaya...

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

RALEIGH-DURHAM, N.C., February 09, 2023--(BUSINESS WIRE)--Avaya (NYSE: AVYA), a global leader in solutions to enhance and simplify communications and collaboration, today announced CRN, a brand of The Channel Company, named John Lindsley, VP of North America Channel Sales at Avaya, to its 2023 Channel Chiefs list. This annual list by CRN identifies top IT channel executives who continually demonstrate expertise, influence, and innovation in channel leadership.

John Lindsley leads the North America channel sales team and go-to-market channel strategy for Avaya. His channel team consists of dedicated resources supporting technology solution distributors, agents, Value Added Resellers (VARs), service providers, Direct Market Resellers (DMRs) and distributors focused on creating "Experiences that Matter" with Avaya’s customers. Under his direction, this team continues to drive growth and profitability for technology service distributors, distributors, and resellers. Lindsley and his team help to drive an outside-in approach through partner enablement, customer retention, new logo acquisition and modernization by continuously developing their partner relationship with a high-touch approach.

"Our partner ecosystem is an integral part of the journey for customers who create their own path to cloud technologies through Avaya solutions that deliver innovation without disruption," said Lindsley. "I look forward to reaching new milestones this year with our channel partners. Being named a 2023 Channel Chief by CRN is an accolade I’m honored to receive on behalf of Avaya and the partners we serve."

Avaya solutions enable partners to meet customers where they are on their cloud journey by simplifying their migration to the cloud, at their pace, and with the support they need—offering innovation without disruption. Whether selling Avaya’s public cloud, private cloud or trusted premise-based products, Avaya provides resellers the flexibility to position and sell the best solution for the customer. Our incentives are designed to help provide sustainable, predictable, and resilient cashflow in addition to customer scalability and stickiness based upon ongoing services customization.

"Once again, this year’s list gives well-deserved recognition to the IT Channel Chiefs who are dedicated to driving the channel agenda and advocating for the development of strong channel partnerships," said Blaine Raddon, CEO of The Channel Company. "Under their exceptional leadership, influence, and innovation, the IT channel vendor community continues to deliver solutions and services that meet the rapidly evolving needs of their solution provider partners and their customers."

Avaya’s global partner programs are purpose built for the specific partner communities we serve. More than 90 percent of the Fortune 100 companies and 144 million people worldwide rely on Avaya to power their mission-critical solutions every day. Our award-winning Partner Programs have everything you need to succeed whether the businesses being served with communications are built in the cloud, on premise, or as a hybrid.

The 2023 Channel Chiefs are influential leaders who continue to shape the IT channel through innovative strategies, programs, and partnerships in what has become an increasingly complex environment with shifting industry dynamics. Lindsley’s selection not only reinforces his leadership and achievements at Avaya and within the industry, but his commitment to deliver future growth for Avaya’s global partner community.

A panel of CRN editors selected the honorees for their record of business innovation and dedication to the partner community. CRN’s 2023 Channel Chiefs list will be featured in the February 2023 issue of CRN Magazine and online at www.CRN.com/ChannelChiefs.

Find out more about Avaya’s Global Partner Programs and learn how Avaya can bring world class communication and collaboration solutions to your customers.

About Avaya

Businesses are built by the experiences they provide, and every day millions of those experiences are delivered by Avaya Holdings Corp. (NYSE: AVYA). Avaya is shaping the future of customer experiences, with innovation and partnerships that deliver game-changing business benefits. Our communications solutions power immersive, personalized, and memorable customer experiences to help organizations achieve their strategic ambitions and desired outcomes. Together, we are committed to helping grow your business by delivering Experiences That Matter. Learn more at http://www.avaya.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains certain "forward-looking statements." All statements other than statements of historical fact are "forward-looking" statements for purposes of the U.S. federal and state securities laws. 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 comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes 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 its control. The factors are discussed in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") available at www.sec.gov, and may cause the Company’s genuine results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. The Company cautions you that the list of important factors included in the Company’s 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 press release may not in fact occur. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

All trademarks identified by ®, TM, or SM are registered marks, trademarks, and service marks, respectively, of Avaya Inc. All other trademarks are the property of their respective owners.

Source: Avaya Newsroom

About The Channel Company

The Channel Company enables breakthrough IT channel performance with our dominant media, engaging events, expert consulting and education, and innovative marketing services and platforms. As the channel catalyst, we connect and empower technology suppliers, solution providers, and end users. Backed by more than 30 years of unequaled channel experience, we draw from our deep knowledge to envision innovative new solutions for ever-evolving challenges in the technology marketplace. www.thechannelcompany.com

Follow The Channel Company: Twitter, LinkedIn, and Facebook.

© 2023 The Channel Company, LLC. CRN is a registered trademark of The Channel Company, LLC. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230209005099/en/

Contacts

Julianne Embry
Avaya
jcembry@avaya.com

After protracted negotiations with creditors, ailing digital communications solutions provider Avaya (AVYA) finally filed for bankruptcy on Tuesday.

As the restructuring support agreement has been signed by more than 90% of the company's secured lenders, implementation should go swiftly with Avaya expected to emerge as a private company within the next 60 to 90 days.

Completing the Financial Restructuring will reduce the Company’s total debt by more than 75%, from approximately $3.4 billion today to approximately $800 million. Additionally, it will substantially increase Avaya’s cash and strengthen its liquidity position, resulting in an expected emergence balance sheet with less than 1x net leverage.

The company has received commitments for an aggregate $628 million in debtor-in-possession (“DIP”) financing, including a new $500 million term loan facility from secured creditors Apollo Global Management (APO) and Brigade Capital Management, among others.

In addition, a bank syndicate led by Citigroup (C) will provide a new $128 million asset-based lending ("ABL") facility.

Following completion of the restructuring, both loans will be rolled into exit facilities.

Moreover, a number of secured creditors have agreed to backstop a $150 million rights offering at exit.

In aggregate, Avaya has secured almost $780 million in new capital which together with cash on hand and cash generated from operating activities, is expected to provide substantial liquidity to support the company during the restructuring process and beyond.

Lastly, the company has restructured its strategic partnership with RingCentral (RNG) with RingCentral's $125 million in the company's 3% Series A Convertible Preferred Shares being cancelled:

Avaya will continue to act as the exclusive sales agent for direct and partner sales of Avaya Cloud Office, Avaya’s exclusive multi-tenanted cloud PBX solution, in the geographies where it is available. The partnership has also expanded to include additional go-to-market constructs that enable Avaya to sell Avaya Cloud Office to its installed base on a direct basis. In addition, Avaya will be compensated in cash as Avaya Cloud Office seats are sold and, in connection with the Financial Restructuring, RingCentral’s preferred stock in Avaya will be eliminated.

As predicted by me for some time already, 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:

Existing equity holders should note that the NYSE is expected to commence delisting proceedings with the common shares likely to start trading on the Pink Sheets on Wednesday or later this week.

Please note that investors with short positions in the common shares won't be required to cover.

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

With Avaya expected to emerge as a private entity within the next 60 to 90 days, common shareholders should sell their holdings and move on as soon as the stock commences trading on the Pink Sheets later this week.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

DURHAM – Avaya announced on Tuesday that it would restructure its financial situation, under which the company anticipates eliminating more than 75% of its debt and increasing liquidity in the business.

The plan required the company, and all of its U.S. subsidiaries, to file for Chapter 11 bankruptcy.

With headquarters in Durham, and a large presence in the region, Avaya had warned in August that there was “substantial doubt” about its ability to survive.

Earlier this year, the company received notice that its stock was trading below the minimum price listing criteria of the New York Stock Exchange, and analysts again became concerned about the firm’s viability.

Now, a statement from the company says that the financial restructuring process will reduce its debt by more than 75%.  The current debt load is $3.4 billion, but after the restructuring process, the firm will carry only about $800 million in debt.

Executing this maneuver, which the company said was agreed to by “more than 90%” of its secured lenders, is expected to also strengthen the firm’s liquidity.

The bankruptcy process could occur in as little as 60 days.

Tech firm Avaya warns ‘substantial doubt’ about ability to survive; layoffs loom

CEO calls maneuver a ‘transformation’

“Strengthening Avaya’s capital structure is a critical step to fully realize our transformation, and we are excited to move ahead as a well-capitalized company with one of the strongest balance sheets in our industry that includes substantial cash to invest in our own success,” said Alan Masarek, the company’s CEO, in a statement.

Masarek joined the company in July 2023 after the firm’s longtime CEO Jim Chirico was “removed.”  Avaya also cut jobs multiple times in 2023, including in September 2023.

Along with the bankruptcy filing, Avaya completed other customary motions at the U.S. Bankruptcy Court for the Southern District of Texas, it said in the statement.

Such motions will enable the company’s operations to continue during the process, including the payment of its workers and vendors.

To facilitate, Avaya will receive $628 million debtor-in-possession financing, it said.

And Masarek is confident about the company’s future, despite the bankruptcy filing.

“We have made significant progress pioneering an ambitious business model transformation, establishing a competitive product strategy for our subscription and cloud-delivered services and implementing operational efficiencies to better serve the Avaya ecosystem,” he said in a statement.

Avaya news: Will this Triangle tech firm go the way of Nortel?

Avaya Holdings Corp has filed for Chapter 11 bankruptcy and secured a financing of $780 million as it restructures its business, the IT firm said on Tuesday.

Avaya said upon completion of the restructuring process it will reduce its total debt by more than 75 per cent, from nearly $3.4 billion to about $800 million.

The new capital is "expected to provide substantial liquidity to support Avaya during the process and beyond," it said.

The cloud communications company added it would continue to serve its customers and partners without interruption and expects to complete the process in 60 to 90 days.

Avaya had said there was substantial doubt about its ability to continue as a going concern in light of a debt maturity in 2023, according to a Wall Street Journal report in December, which cited people familiar with the matter.

Earlier in September, Avaya has also announced restructuring, including job cuts, to reduce costs. Avaya's shares have fallen nearly 99 per cent last year.

Evercore Group is serving as financial advisor to Avaya for the process.

(Reuters) - Avaya Holdings Corp has filed for Chapter 11 bankruptcy and secured a financing of $780 million as it restructures its business, the IT firm said on Tuesday.

Avaya said upon completion of the restructuring process it will reduce its total debt by more than 75%, from nearly $3.4 billion to about $800 million.

The new capital is "expected to provide substantial liquidity to support Avaya during the process and beyond," it said.

The cloud communications company added it would continue to serve its customers and partners without interruption and expects to complete the process in 60 to 90 days.

Avaya had said there was substantial doubt about its ability to continue as a going concern in light of a debt maturity in 2023, according to a Wall Street Journal report in December, which cited people familiar with the matter.

Earlier in September, Avaya has also announced restructuring, including job cuts, to reduce costs. Avaya's shares have fallen nearly 99% last year.

Evercore Group is serving as financial advisor to Avaya for the process.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Shailesh Kuber)