Any truth with AVAYA going into chapter 7?
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Hearing from Avaya partners that the suits by Oracle and Black Berry have slowed the Chap 11 significantly and may have pushed Chap 11 exit away, leading to Chapter 7. Hearing from many disgruntled partners that Avaya is taking sales direct and undercutting partners, not providing support to partners for sales opportunities, and chasing deals they ignored 6 months ago.
The main source of the Chapter 7 rumors was the filing of a customary, hypothetical plan of liquidation which actually, “makes the case against liquidating. It shows why pursuing Avaya’s proposed Plan (chapter 11) provides more value to claimholders than liquidating its assets (chapter 7). This analysis is a customary part of the restructuring process and, as the title states, is only hypothetical.”
If you don't know what you're talking about, you're just a rumor monger. And that's what we have here, rumors and FUD.
Rumours! Anonymous. non-sourced inuendo and/or conjecture. Much of it probably written either by Avaya competitors or disgruntled layed- off former employees.
Blah blah blah....is this CNN ?
I just wish the company would keep employees updated with daily Emails.
This is crazy. Management is afraid to stand in front of loyal employees and tell us the TRUTH? Effing cowards. But not surprising - this is the way incompetent people behave. Rather than dealing with the facts, they engage in delusional thinking and try to convince themselves and others that they're right. Of course, based on their previous behavior, it could be that they're just liars.
Hearing should confirm, unfortunately no other outcome looks possible.
A while back, Avaya filed a motion requesting an extension to the timeline for negotiating/finalizing their restructuring plan. The "leaders" said that they made the request only to give them the exclusive right to negotiate the plan with creditors. This means that the creditors were not in agreement and Avaya was trying to stop them from forcing Chapter 7. Yesterday, the court said that the hearing on Avaya's motion was being deferred until May 25th which, not surprisingly, is the day the sale of the Networking business becomes final. Since there clearly has been no agreement on the restructuring plan, it is unlikely that the Court will grant the time extension and the creditors will be free to push for liquidation. Any objections to Avaya's original motion must be submitted by May 18th, and can be seen on the Prime Clerk web site. You can expect all the affected creditors to file objections, as they just want this thing over with ASAP.
No announcement will be made until after the conclusion of the networking business sale to Extreme. This will be finalized at the end of June. After they receive the money from the sale ~$70 million in cash, they will make an announcement. They must have the money in order to calculate the actual assets of the company before liquidation. There is no way a restructuring agreement will be struck with creditors, which will force it into Chapter 7.
Must wait till next court hearing untill then its all rumours...
Although one can clearly see indications that something is not right...
Might be best to be on the look out for other options...