Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

Avaya Bankruptcy Reorganization Plan Filed

0
0

Avaya filed with the U.S. Bankruptcy Court a First Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “In developing the Plan, the Debtors engaged in good faith negotiations with many of their key stakeholders, including, among others, the Committee, PBGC and the Ad Hoc First Lien Group. The Plan is the culmination of those discussions and embodies a global settlement of issues between the Debtors, the Committee, PBGC, and the Ad Hoc First Lien Group (the ‘Global Plan Settlement’). The components of the Global Plan Settlement include, among other things: (i) the PBGC Settlement, which, among other things, provides for the termination of the Avaya Salaried Pension Plan in exchange for certain consideration, on the terms and conditions set forth therein; (ii) the Valuation Settlement, which establishes a Settled Valuation for the Avaya Enterprise of $5.721 billion (which includes $201 million attributable to certain of the Debtors’ intellectual property) and the allocation of such value under the Plan in the nature of a settlement; and (iii) the Challenge Claims Settlement, which among other things, settles certain potential Claims and Causes of Action which could have been asserted on behalf of the Debtors.”

In addition, “Based on the Settled Valuation and other elements of the Global Plan Settlement, including with respect to the treatment of the adequate protection payments made by the Debtors to or for the benefit of Holders of First Lien Debt Claims during the pendency of the Chapter 11 Cases for Plan distribution purposes, the Allowed First Lien Debt Claims in the amount of $4,609,365,976 will be reduced by payments made as adequate protection solely to the extent by which such adequate protection payments exceed the amount of Encumbered Value that is used to satisfy administrative expenses properly allocable to Unencumbered Value for which there is insufficient Unencumbered Value to satisfy, which reduction is estimated to be approximately $232 million as of the date hereof….The Allowed PBGC Claims include $1,240,300,000 on account of unfunded benefit liabilities with respect to the Avaya Salaried Pension Plan, plus any and all unpaid minimum funding contributions due with respect to the Avaya Salaried Pension Plan.”

The Court scheduled a November 14, 2017 hearing to consider the Plan.

Read more Avaya bankruptcy news.

The post Avaya Bankruptcy Reorganization Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images