https://www.pehub.com/buyouts/avaya-struggling-with-6-bln-debt-load-nears-bankruptcy-reports/
10 replies (most recent on top)
Someone's comment is so right - senior management screwed up for long time. CEO, CFO, COO, COB all need to resign or take $1 pay for 2017 should they stay.
Avaya taking a huge 6B debt from which All senior executives draw big money for themselves, eventually bled the company to death, this is not the first time I saw this happen, someone else's money.
There is no hope. Lies every week with promises from the leadership with some announcement. JT came out and assured the world all debts are manageable, and was very cool about it. It sounds this is the end of Avaya this week with bankruptcy news. Lets see if the judge will even approve it. The financials must be looking really ugly. How can no one be interested in buying this company out there? Can someone explain to me?
Avaya US to apply for chapter 11 protection by Wednesday of this week. CD&R have stalled all negotiations while Avaya resolve the debt issues. This is bankruptcy protection to protect what cash reserves they have while they renegotiate the debt and hopefully get a deal. Avaya's CEO, CFO and COO should all be jailed for the mess they have created, everyone knew this debt repayment was coming, and they all simply expected business to pick up, no vision, no forward planning, no forecast, no product roadmap, nothing, just respin the same products and change the name over and over and over. VP's who never got past 1999. But every one of them walking away with record bonuses every year even though Avaya haven't posted a profit since ever. They agreed a restructuring fund today, the plan to cut costs is to go cut a lot of jobs in Europe. If you're offered a package take it, this does not end well.
Answer re bankruptcy. It is bankruptcy protection not bankrupcy thru Nortel example we lost no pay at all and actually saw our biggest STIP during it. Getting your severance if cut while in bankruptcy waited as it was a claim against money left you are a claimant. Hearing business as usual us scary to hear but it is accurate. You might even see sales go up as customers buy spares.
Question.. If bankruptcy comes do we loose a month's salary? As we are paid a month behind.... right....
Horrible situation for the employees but it is probably best to that Avaya going into bankruptcy and get rid of the entire incompetent execs team starting with KK . He's nothing but a cheerleader!
Sorry, this time it's the real deal. It was discussed on an internal call last week. Game over.
Probably just an aggregation and rehash of the WSJ and NY Post articles- so nothing new
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