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Avaya Files Chapter 11 Reorganization Plan

April 14, 2017

Avayahas filed a chapter 11 plan of reorganization and related disclosure statement with the United States Bankruptcy Court for the Southern District of New York. The Plan outlines a path to significantly reduce Avaya’s pre-filing debt, which would strengthen the Company’s balance sheet, improve financial flexibility and position it for long-term success.

“We are pleased to have filed the Plan, which is a crucial step forward in our effort to recapitalize Avaya’s balance sheet and create a stronger and healthier company that can create even more value for our customers,” said Kevin Kennedy, Chief Executive Officer of Avaya. “We look forward to working closely with all stakeholders over the coming weeks and months to refine the Plan and build consensus.”

Under the proposed Plan, which will continue to evolve as Avaya works toward creditor consensus and confirmation by the Court, among other things, the following items are contemplated:

•Avaya’s pre-filing debt will be reduced by more than $4 billion;

•Avaya’s restructuring will be achieved through a debt-for-equity exchange, in which certain secured creditors would acquire 100 percent of reorganized Avaya’s equity;

•Avaya’s general unsecured creditors will share pro rata in a cash pool;

•Avaya will continue to honor and maintain its qualified U.S. pension plans, which make up the vast majority of Avaya’s pension obligations, following its emergence from bankruptcy; and

•Avaya will continue to honor and assume its two collective bargaining agreements and all related agreements.

Avaya has requested that the Court schedule a hearing on May 25th to consider approval of the Disclosure Statement related to the Plan. Following Court approval of the Disclosure Statement, Avaya will distribute the Plan and Disclosure Statement to voting creditors for their consideration.

Kennedy added, “Our normal business operations are running well, and we continue to sign significant customer renewals and new customer contracts. In addition, the Company’s consolidated balance sheet now has more than $750 million in cash, reflecting DIP financing proceeds and positive cash flow from operations. We remain confident in our ability to maximize value for all of our stakeholders and to complete our balance sheet restructuring as soon as reasonably possible.”

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