As one of the biggest names in campaign communication, it was a big surprise to hear last year that Avaya may not make it to 2017. Well, it’s a quarter of 2017 and avaya salary is still standing, albeit for darker reasons.
We may all know at this stage that Avaya recently filed for protection from Chapter 11 violations. But just a few weeks ago, Avaya announced the commencement of its reorganization plan. However, as it is very early in the process, the details are not yet complete and everything will move very slowly.
But with a plan to “significantly reduce pre-deposit debt,” we wanted to take a closer look at what we know so far and what this means for Avaya now and in the future. More importantly, we were curious to see how this could affect existing Avaya customers. Just recently we saw Avaya launch its new Zang space solution, which many see as a strong competitor, but the question remains: Can a company continue as usual and can Avaya be the one to govern such a major reorganization?
Avaya was recommended
So, on April 13, Avaya announced that it had officially submitted its Chapter 11 reorganization plan. Concluded by the U.S. Bankruptcy Court for New York’s South District, Avaya’s plan outlines what it sees as “a way to significantly reduce Avaya’s pre-debt. The main hopes and points identified in the Avaya plan are going to evolve as the provider works towards “consensus and credibility with the Court,” but the key points are explained as follows:
Avaya’s pre-filing debt will be reduced by more than $ 4 billion.
Avaya’s restructuring will be accomplished through a debt-for-equity exchange, in which some secured creditors would receive 100 percent of Avaya’s restructured equity.
Avaya’s common insecure creditors share pro rata in a money pool.
Avaya will continue to respect and support the U.S. pension plans, which make up the bulk of Avaya’s pension liabilities, following its bankruptcy.
Avaya will continue to honor and accept both bargaining agreements and all related agreements.
In their announcement, Avaya CEO Kevin Kennedy set out some optimistic views on the overall announcement and proposed plan:
He said, “We are pleased to sign the Plan, an important milestone in our efforts to improve the Avaya balance sheet system and build a strong and robust company that can provide significant benefits to our customers.” Kevin Kennedy, president of Avaya. “We look forward to working with all partners in the coming weeks and months to revise the Plan and build an agreement.”
Most importantly, Kennedy made a special statement about the future of Avaya:
The beginning of this issue, I think, is the most worrying: how will business from here to another country in Avaya? Well, the CEO said, the business is as it was before but nothing has changed. But the reality is that the CEO will say that – they don’t want to lose their revenue or make their head spin to jump.
And, What Does It All Mean?
Of course, only time will tell the outcome of the whole process. We can’t understand what is happening to Avaya, or how the change is affecting customers. However, we can try to put in place the plans they want, and build an understanding of what this fact means for end users.
Avaya will also work to deliver on its retirement promises.
And it seems that Avaya has really managed to keep its business going regardless of the whole process. In this extensive review by Steve Leaden of NoJitter, he noted that Avaya had been quite busy since they were filed on January 19. In Leadena’s own words:
Approval of the company’s salaries – on 20 March, the judge in Chapter 11 approves the movements of the company’s salaries, approving the payment of wages, salaries, commissions and reimbursement of expenses in the ordinary course of business; continuation of the employee benefits program; and the resumption of incentive programs. (The court had previously temporarily approved proposals for certain wages, salaries and benefits.)
Planned sale of the Avaya network – The next planned trial date is mid-April (as I write), with the transaction due to be completed on June 30, the end of Avaya’s fiscal third quarter of 2017. “Based on Avaya’s voice not only but also its actions thus far, it looks like the business will continue as planned. With DIP funding, Avaya can keep its operations running and its lights, and salaries have the power. to keep workers (including benefits) Avaya is also selling their business online They are losing weight and going first.
But in addition to this, as we saw in March, Avaya continues to produce new products. Additionally, they recently announced the announcement of their new Zang cloud platform. So with everything falling into place, at least so far, should existing Avaya users and customers care? Of course, just because the storm is calm now doesn’t mean the winds will never pick up again next month. With everything already moving to the cloud and more emerging competitors, like Amazon’s new Amazon Contact Center solution, maybe this is the right time to start that shopping list.
It’s time to change?
Now, I am a skeptic by nature, but these issues need to be addressed with a grain of salt. As I said before, of course, Avaya will make everything feel good and in control. If they lose their customer base due to an uncertain future, it will be much more difficult for them to stay. So the goal is to keep users where they are so the plan has time to work on its own.
But is it worth walking around hoping that things will work out? I’m not the first to point this out, but Avaya’s debt is huge. Even Leaden wrote “how a fight for the company got out of debt” and doesn’t see the supplier get out of Chapter 11 sooner. I think everyone can understand that 4 billion is a huge amount. And despite Avaya’s size and reach, there will be a difficult road ahead.
So I vote for others that if Avaya is your current business client, it would be a good time to at least consider changing the solution. We don’t know what Avaya will look like on the other side of Chapter 11 at the end of the day, nor do we know how long it will take for her to appear on the other side. Consistency is too shaky to rely on such a central feature of most businesses, communication and support.
When the time comes, the lender manages the whole situation for Avaya – at least. Of course, it seems like a keyword here; nothing is accurate and it can be difficult to be consistent throughout the process. If consistency in your work and services is important to your customers … well, then it can be difficult to balance a long-term plan with short-term results.
Now we always encourage users to switch to a Cloud or PBX Hosting solution or look for an alternative that can offer the same or less. At this point, if you haven’t already, this may be the best time to look for an alternative. Migrants are not instantaneous and can be a nervous process in themselves. But if you wait that long, it can plunge your business into hot water from a torturous migration process. Ava may come out stronger than ever in Chapter 11, but you may want to get closer to learning it for your business.