Avaya to emerge from Chapter 11 in mid-October. Great news for Avaya and its employees.
http://www.nojitter.com/post/240172828/avaya-takes-critical-next-step-in-bankruptcy-process
10 replies (most recent on top)
Avaya is going to be fine. The customer base is much too large for the company to be discarded like some of the Cisco agents trolling here are so eager to proclaim.
RE: question about public company... please read the link referenced in the original post: "revealed its intent to emerge from Chapter 11 as a public company"... plus, it is in the filing with the court and every article about this. The government agency that will take over the salaried pension will get 7.5% of stock in the reorganized public company as well and the creditors will get % too. This is part of the plan.
KK has been hired for the next 2 years as an advisor and will get $1.9M per year in salary plus that much more in bonus awards. He get's a lock, meaning that even if the new board fires him he gets the 2 years pay anyway.
So is Silver Lakes out now controlling Avaya? Will be interesting who the new board me beers will be. Maybe KK can make a guest appearance:)
Were did you people get the idea they would be a public company after bankruptcy? The First Lien Holders will own over 90% of the company and nothing I have seen says they are going public.
Avaya may be around for another 1-2 years in it's current form. This dog is dying and will soon be dead due to bad masters. Hopefully, for the current employees, the companies that pick the bones will have better leadership.
Looks like a temporary fix. Tech stocks with profitability issues like snap, blue apron, Fitbit have been tanking. Not sure how legacy tech player like Avaya will fare on going public.
Less good for some pensioners but yes it is a path out. At least you get rid of Kevin, in a public company he would have been gone years ago.
Jesus its only the next step. Remember some of the first lien creditors have not agreed and the unsecured creditors will only get 8.6% return whilst the second lien get 1.5%. You are not out of the woods yet. When you do emerge as a public company bet you get bought cause you share price will be low - then let's see what happens...
It was awesome news, so proud to work for this great company and new everything would work out!