Thread regarding Avaya layoffs

Yeah, "Don", I read it all the way through. The issue is that Avaya has not bothered to initiate a good faith negotiation around the restructuring plan - which is a requirement. Instead, they file an unacceptable plan with the court and then file a motion to delay. It's doesn't take a rocket scientist to know that as this drags on, the value of the company declines. They're simply trying to force the creditors to accept a bad deal, using the unspoken threat of reduced value if they delay. Amateurish at best and the creditors clearly aren't having it. The document also said that the leadership is trying to write a big payout for themselves into the deal - which is ridiculous since they are solely responsible for the situation Avaya is in. Unfortunately, the pensioners are going to pay a hefty price for their incompetence and greed.

If you had read the rest of the document you would have discovered that the AD HOC First Lien Group stated that any resturcturing by Avaya without shedding it entire pension obligation would be unacceptable to the AD HOC group. They even quote another bankruptcy where the debtor was forced to negotiate with the PBGC for them to take over the pension.

Who is the enemy, Avaya or the First Lien Holders or both?

Absolutely stunning display of hubris and self-interest. There is a special place in hell for these corrupt leaders.

I read that.

See this section:

"With the Current Plan having been on file for more than 30 days, the Ad Hoc First Lien Group has yet to receive an answer to the question

of why the Debtors chose to file a plan that cannot be confirmed without the acceptance of first lien creditors with full knowledge that

neither the Ad Hoc First Lien Group (whose members hold in excess of 50% of the Debtors’ first lien debt) nor the Ad Hoc Crossover Group

(whose members hold in excess of 30% of the Debtors’ first lien debt and 80% of the Debtors’ second lien debt) supports the terms of the

Current Plan. The only answer can be that the Debtors are seeking to pressure first lien creditors to vote in favor of a plan that only the

Debtors’ board of directors has deemed satisfactory (for the benefit of PBGC, out-of-the-money creditors, equity sponsors and directors and officers)

or risk potential value degradation to first lien recoveries associated with prolonged chapter 11 cases or a conversion to chapter 7.

If this is the Debtors’ tactic, it will not be successful."

This isn't about the "leadership" being dumb, it's about putting their interests ahead of the company and employees. They're playing a very dangerous game here, and they will not prevail. Unfortunately, many good people will suffer and the hands of these greedy, fraudulent losers. If you read the entire document, you'll see that while there MAY be chance to negotiate a restructuring deal, the creditors will not be coerced into accepting something that isn't in their best interests. Avaya thinks it can strong-arm them into a bad deal, but it's not going to happen. I feel sorry for everyone who chose to bet with KK, JC and the others; you were misled, misinformed, misrepresented, and totally disregarded. These are vile, disgusting people who should never be employed by anyone again.

Oh yeah. This is going to be just GREAT for Avaya employees. LOL.

Company is not dead. There will be buyers on the Ch7 auction. Of course name may change, but products and support will remain. A new investor can have 5-10 percent yearly returm on investment. If foreign biders are allowed, price can be quite high. Keep cool calm and collected.

So how many weeks/months are they giving us until chapter 7 drops the bomb?

Relax dude. Do as little as possible, enjoy your free time and take your pay checks. Do not stress so much about a dead company.

Execs just milking what is left as they already see that the end is near.

But wait, there's more. You should really read the whole thing. Looks pretty clear that the creditors want NO part of their ridiculous plan. Bye Bye, Avaya.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Prior to filing the Current Plan, the Debtors were well aware that a majority of

first lien creditors would not agree to their proposed treatment under the Current Plan, which

renders the Current Plan patently unconfirmable. Rather than using their initial Exclusive

Periods to build consensus around a confirmable chapter 11 plan, however, the Debtors defiantly

filed the doomed Current Plan, which lacks support from any major creditor constituency and caters almost exclusively to the interests of (i) Pension Benefit Guaranty Corporation (“PBGC”)8

and (ii) the Debtors’ equity sponsors and current officers and directors—to whom the Debtors propose to gift $330 million in equity9 (based on the Debtors’ questionable plan valuation) and

Its enron again so friends we must run