Avaya may file for chapter 11 bankruptcy even as the networking company seeks to sell its call center business, according to MarketWatch.
> Related: Avaya Pension Plans at Risk?
The report states:
"The company, which was taken private by buyout firms Silver Lake and TPG in 2007, could file for chapter 11 protection as soon as next month, according to people familiar with the matter. The filing would likely come after it reaches a deal to sell the call-center software business, the people said."
Silver Lake and TPG paid $8 billion for Avaya just before the Wall Street financial crisis emerged. Avaya has been seeking buyers for its entire business as well as the call center portion since at least May 2016. The company has about $6 billion in long-term debt. The call center unit could fetch around $4 billion, MarketWatch estimated.
Avaya's revenue was about $950 million in Q4 2016, down from $1.008 billion in Q4 2015. EBITDA was about $275 million, up from $246 million in Q4 2015, according to preliminary results released in October. The company experienced year-over-year growth in Contact Center and Networking products, and Cloud & Managed Services; along with sequential growth in Unified Communications products, Avaya said at the time.
Avaya announced a new Avaya Edge partner program earlier this month. The three core goals were simplicity, greater benefits and flexibility for partners.
ChannelE2E has reached out to Avaya for comment about the alleged bankruptcy plans but has not heard back from the company.
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