According to the purchase agreement, Extreme will offer employment to "a majority" of employees at their current compensation. Offers must go out within 45 days after the filing date which was yesterday. Of course, that doesn't guarantee that they won't be terminated after the acquisition completes, but at least there is some protection for a while.
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I have the list...and you are not on it.
Ok, they can determine who will be on the boat within 45 days after the signing of the APA but doesn't mean any offer to the transferred employeeds will be sent 45 days after the APA. That's what the OP stated in his post which is incorrect
"Offer must go out 45 days after the filing..."
Doesn't make sense to send any offer until you are the successful bidder which can only be determined after the auction if there is one
The actual court filing states that the employees to be retained will be determined by the stalking horse bidder - Extreme. Actual offers, or course, will come from the successful bidder after the auction.
From the court documents:
"...such employment offers to be determined within 45 days of signing of the Stalking Horse APA and such employment offers to be for positions, responsibilities, base salaries and employee benefits not less favorable than those of such employees’ current positions, responsibilities, base salaries and employee benefits..."
The APA was signed on March 7th, so this means that by April 21st the employees who will be offered positions will have been determined. The reason for making the determination before the bidding occurs on May 18th is so that the bidders know precisely what they're bidding for.
According to the court document, the employment offer will go out 30 days prior to the Closing Date which KK has said June 30th. That makes sense as we will not know who will be the successful bidder until after the auction which is on May 23rd.. So hold on to your seat until the end of June if you are part of networking. I'm sure some of the useless VPs, directors have gotten their own seat on the networking boat. I hope whoever the winner is, will not take these incompetent people over .
They have survived the last purged with Nortel. We need fresh blood and leaders in there.
One significant downside for many would be, doing the math, the "majority" of employees are non-US based. Good for some, bad for the other 49%.
see below Extreme will fund 5 M$ for severance of employees they dont bring over. That would seem to mean they will take the majority. These rules are set for any auction winner it is part of the terms.
Avaya filed with the U.S. Bankruptcy Court a motion for entry of (i) an order approving bidding procedures in connection with the sale of the Debtors’ networking business, approving the form and manner of notice, scheduling an auction and a sale hearing, approving procedures for determining cure amounts and extending the deadline to assume or reject the Billerica lease and (ii) an order authorizing and approving the sale of the Debtors’ networking business.
The motion explains, “The Debtors are also requesting approval of a termination fee equal to $3 million (the ‘Termination Fee’) and expense reimbursement of up to $750,000 (the ‘Purchaser Expense Reimbursement,’ and together with the Termination Fee, the ‘Bid Protections’), representing approximately 3.00% and 0.75%, respectively, of the total potential value to Avaya of approximately $100 million….The total potential value includes at least approximately $68 million in cash proceeds (before transaction costs and purchase price adjustments), up to approximately $22 million of aggregate, undiscounted value in the assumption of future dark lease and pension obligations of certain Avaya non-Debtor entities (with any reduction of this amount to be offset by an increase in cash proceeds) by the Stalking Horse Bidder, and the ultimate release of up to $10 million in cash to Avaya from an indemnity escrow account one year after closing.”
In addition, “Pursuant to closing the transaction, Avaya would be responsible for paying up to approximately $5 million in severance costs to employees of the Business not transferred to the Stalking Horse Bidder.” The bid deadline is May 18, 2017, with a May 23, 2017 auction and May 25, 2017 sale hearing to follow. The Court scheduled an April 4, 2017 hearing to consider the bidding procedures motion, with responses due by March 28, 2017.
A lot of idiotic replies - especially the last one
Nortel Enterprise all over again. Hopefully the hard working ones got retained and none of the useless execs/VPs who managed to get on the boat the last time.
Overall you can bet that it will be a major cut as there are so much product overlapping - Wilan is probably done, ERS done. They will take a few support guys for the older legacy products and let the rest go
Good luck to everyone!
Maybe the winning bidder will hold a "Thunderdome" style event to see who those lucky few that get to retain employment will be :-)
Two employees enter ... one employee leaves ...
Overall good news. This is a purchase agreement bargaining item what it means is that Extreme would be liable for separation packages (if there any) for a majority of employees.
They have worked out the numbers of employees and it will include some Services which has been typically box based, they know who they are. APS same thing, they know who they are and will be included.
Last poster is obviously an example of individuals who will not be offered a position, as he clearly doesn't have enough sense to read APA which clearly explains this.
This is going to be disastrous
what nonsense, extreme are only the stalking horse bidder, there won't be any offer letters going out you until there is a winning bidder
Any details on the services employees are they moving to extreme too
From the purchase agreement:
(a) Offer of Employment. Not later than thirty (30) days prior to the Closing (or if required by applicable Law, such greater period as required by applicable Law and practices), Purchaser or one of its affiliates shall offer employment with Purchaser or one of its affiliates to AT LEAST A MAJORITY** OF THE EMPLOYEES (which majority excludes ARD Automatic Transferred Employees), commencing as of the Closing, on the terms set forth in this Article VI (including Section 6.02(a)). Commencing promptly following the date hereof, the parties will discuss and use their respective reasonable best efforts to determine positions, roles and/or functional areas for Employees that will and will not be offered employment by Purchaser or one of its affiliates (as contemplated by the previous sentence), and to complete such determination, within fortyfive (45) days following the date hereof. The Non-ARD Employees who accept the offer of employment with Purchaser or one of Purchaser’s affiliates shall be referred to as “Non-ARD Transferred Employees”.
** Lest you get overconfident, keep in mind that majority is defined a 1 more that half. So that means that up to 1/2 of the networking employees will be let go prior to acquisition. Are you feeling lucky?