There Is Help. There Is A Solution.
Contact Us Today! 603-635-4149

Bankruptcy may give Avaya chance to restructure its service model

Most in Manchester would likely view a company filing for bankruptcy as a sure sign that it is struggling. While that may be true in many cases, some companies may actually look at bankruptcy as means of moving their businesses forward. A Chapter 11 case allows a company to reorganize its structure while also addressing its debts and liabilities. The hope is that by continuing to operate during its bankruptcy case, a company will emerge from such an episode stronger than ever.

That certainly is the goal of the networking device manufacturer Avaya. Known for the enterprise networking gear that it sells and the call-center services it supports, the company recently filed for a Chapter 11 bankruptcy. While Avaya did post $262 million in operating losses for the last fiscal year, the company’s CEO actually claims that it is doing quite well, having generated $3.7 billion in revenue in 2016. In fact, the company is using its bankruptcy filing to helping it transition into a new service model of offering clients software solutions. As the company implements this change, executives hope that money generated through its continued operations as well as a $725 million financing package will help support it. That financing, however, is still pending approval from bankruptcy court officials.

For those whose companies’ debts and liabilities are keeping them from becoming the product and service providers that they really want to be, a Chapter 11 bankruptcy may be the key to successfully satisfying creditors while also being granted the time needed to restructure their operations. Bankruptcy should not, however, be viewed lightly due to the impact it can have on a company’s financial profile. Those considering the decision of whether or not to file may first want to seek the advice of an experienced attorney.

Source: PCWorld “Avaya says bankruptcy is a step toward software and services” Lawson, Stephen, Jan. 19, 2017 

No Comments

Leave a comment
Comment Information

Law Office of Paul Petrillo
One Tara Boulevard
Suite 200
Nashua, NH 03062

Phone: 603-635-4149
Map & Directions

Google Map