Global Communications company, Avaya, filed for bankruptcy on Thursday, 19th of January 2017. The company did this to reduce its debt load of about $6.3 billion. It however said it would not sell its call centre business as it had tried to do last year. (It had tried to sell the call centre business to buyout firm Clayton, Dubilier & Rice for about $4 billion).
Avaya is a leading global provider of next-generation business collaboration and communications solutions, providing unified communications, real-time video collaboration, contact centre, networking and related services to companies of all sizes around the world.
The company had unsuccessfully tried to transition from a hardware company to a software and services company.
“Avaya’s current capital structure is over 10 years old and was put in place to support our business model as a hardware-focused company, which has evolved significantly since that time,” said Chief Executive Officer Kevin Kennedy. “Now, as a result of the terms of Avaya’s debt obligations and the upcoming debt maturities, we need to recapitalize the company.”
The company is currently working out the terms of a restructuring deal with its creditors. The original goal was to have one in place before bankruptcy, but an agreement was not reached.
Avaya opened its Nigerian office in 2012.
