According to the latest reports, Avaya has filed a motion with the U.S. Bankruptcy court, asking for a third order which will extend the exclusive debtors plan, and allow the company to solicit acceptances through both November 30th, 2017 and January 21st, 2018.
The latest exclusivity extension came not so long ago, on the 26th of July 2017. Since that time, Avaya has been able to successfully negotiate a document known as a "Stipulation of Settlement" with the Pension Benefit Guaranty Corporation. Avaya's motion outlines that since July, they have been able to resolve issues with qualified pension liabilities and add improved recoveries and further modifications to their plan of emergence from Chapter 11.
Avaya Pushes Ahead
The journey to a world outside of Chapter 11 bankruptcy hasn't been a simple one for Avaya. It seems that they've had to go through endless complicated discussions with lien holders and courts, while partners and customers sit waiting for news.
Overall, the case has been incredibly complicated, with billions of dollars of debt to think about, global operations, legacy liabilities, and thousands of retirees, employees, and stakeholders to consider. In other words, it's not much of a surprise that Avaya would need to consider another extension to make sure that everything is fully in place.
With their brief extension for exclusivity, Avaya is hoping to build upon the progress that they've already made into emergence from Chapter 11, without having to worry about too much delay or disruption that would otherwise be caused if competing plans were filed at this time.
