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US-based telecommunications solutions provider Avaya, which considers India among its top 10 markets by turnover, has filed for Chapter 11 bankruptcy protection. However, the company’s foreign affiliates — including India operations — are not included in the filing and will continue normal operations.
India also hosts the company’s largest R&D with more than 30 per cent of its products and solutions development done out of Bengaluru, Pune and Hyderabad.
Avaya (together with certain of its domestic subsidiaries) has commenced a formal proceeding to restructure its balance sheet to better position itself for the future. To facilitate this restructuring, the company filed voluntary petitions under chapter 11 of the US Bankruptcy Code, the company said in a statement.
The Chapter 11 filing, which under the US bankruptcy code permits a company to reorganise its business, was done in the US Bankruptcy Court for the Southern District of New York.
$725-m loan The Santa Clara, California-based company has obtained a $725-million loan, which is expected to provide sufficient liquidity during the chapter 11 cases to support its continuing business operations, it added.
“We have conducted an extensive review of alternatives to address Avaya’s capital structure, and we believe pursuing a restructuring through Chapter 11 is the best path forward at this time,” said Kevin Kennedy, Chief Executive Officer of Avaya.
“We are operating our business as usual, and are fully committed to providing our customers and partners with the same innovative products and industry-leading service you have come to expect from us,” the company’s India spokesperson said.
“India is among the top 10 markets for Avaya in terms of turnover, in the last three years we have seen around 13-19 per cent growth and we expect this growth to continue in future. Avaya India is working closely with State governments on providing emergency response systems and work on digitisation of education initiatives as major target areas,” the spokesperson added.
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