BankruptcyData’s detailed analysis and summary of Avaya’s Second Amended Joint Chapter 11 Plan of Reorganization [Revised], dated October 31, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on November 28, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Revised Second Amended Plan is premised on a global settlement between the Mediation Parties, as further set forth in the First Lien Plan Support Agreement and Crossover Plan Support Agreement, which modifies the First Amended Plan as follows: the First Lien Reorganized HoldCo Equity Distribution will now equal 90.5% of the Reorganized HoldCo Common Stock less the General Unsecured Recovery Equity Reserve (subject to dilution by the Management Equity Incentive Plan and Warrants); the Second Lien Notes Settlement Equity Distribution will now equal 4.0% of the Reorganized HoldCo Common Stock (subject to dilution by the Warrants and the Management Equity Incentive Plan) and each Holder of a Second Lien Notes Claim will also receive its pro rata share of Warrants for an additional 5.132% of Reorganized HoldCo Common Stock; the Second Lien Call Right is eliminated; PBGC will now receive on account of the PBGC Claims 5.5% of the Reorganized HoldCo Common Stock (subject to dilution for the Warrants and for any Reorganized HoldCo Common Stock issued pursuant to the Management Equity Incentive Plan) and the PBGC Cash Consideration will now equal $340.0 million; and the General Unsecured Recovery Cash Pool will be reduced from $60.0 million to $57.5 million, and the Reorganized Debtors will pay the GUC Oversight Administrator Costs incurred after the Effective Date through the first (1st) anniversary of the Effective Date in an amount not to exceed $500,000 in the aggregate.”
BankruptcyData’s premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to Avaya’s January 19, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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