Most If not all BP's have already diversified their portfolio of manufacturers offered. That protects their employees, their company, and their customers from the misfortunes of an specific manufacturer. It also helps them to more credibly advocate the strengths and weaknesses of different product lines to their customers. Avaya is not going to be everyone's choice but it is a strong player that provides a good value, reliability, and supportability. The large customers I've spoken with since the announcement are not panicked. They've seen Chapter 11's before. And most knew Avaya was carrying too heavy a debt load which was pulling money from the value they received in support and R&D in order to make these large interest payments. Most are heavily invested in this architecture and in expertise to support their systems. Sure, some will run, but most will make reasoned judgements as the professionals they are, as to what strategy is most beneficial for their companies. If they see Avaya improving its ability to provide a higher value to their embedded systems, Avaya will be a pretty solid choice among the alternatives. So, let's all dig in, folks, and show them some great value!
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I almost threw up my lunch.... thanks a lot.
Shedding the $400 million per year in interest payments on the $6 billion in debt will go a long way toward making the business flexible and healthy. That's why KK has kept the focus on EBITDA (Earnings BEFORE INTEREST, taxes, depreciation, and amortization) an accepted index used by the financial industry which shows Avaya's performance to be impressive when viewed outside of the context of the debt it has been dragging around from the $6 billion in borrowing done by the new owners to finance their purchase of the company in 2007. The company is pretty close to as lean as it can and should be operationally to reap outstanding results. I would expect better job security tomorrow without that debt than yesterday with it.
I'm afraid this is the start of a downward spiral. Have spoken with business partners who have already been in touch with Mitel. Customers unwilling to place orders for Avaya, not knowing if there will be support in a years time.
i wish all employees the best as they await their fate
Any news on Zang? Selling off? :-/
Non US check mails
Doing the dirty work? So you know who he is but not his current job role? Massive fmp's? Who knows but they just had an end of quarter. They knew the numbers. Why not then? They didn't need to file to make that happen. Read the filing. I do not believe that Avaya is in the dire straights as portraited by some on here. Maybe I'm an optimist but I believe they have a plan and will be just fine.
Look like date given by KK - 28th Jan is more significant and important to finalize the restructuring plan, which will have to present to bankruptcy court for final approval on chapter-11 protection.
The main element of the restructuring plans will be cost reduction, which means FMPs, location closure etc.
Now all location should expect, FMP notifications coming out very quickly - may be from tomorrow or by Monday.
doing the dirty work of KJK. feel bad for the employees who will feel the wrath of this. gonna be massive layoffs no matter how they spin it to reduce operating expenses.
He never once looked at the camera. Maybe he doesn't understand the concept of video.
can provide more details of what he said?
http://www.avaya.com/investors/usa/newsroom/news-releases/2017/pr-us-170119a/
here you go...chap 11
http://finance.yahoo.com/news/avaya-inc-files-chapter-11-160245536.html