Reports are circulating that Avaya could be facing bankruptcy
Avaya is reaching a chapter 11 bankruptcy filing in an effort to restructure its balance sheet and turn its businesses and financial problems around, according to the Wall Street Journal.
The report states that Avaya has said there was “substantial doubt about its ability to continue as a going concern in light of debt maturity next year”.
A chapter 11 bankruptcy would involve Avaya proposing a plan of reorganisation to keep its business alive and pay creditors over time.
If the company does enter chapter 11, it would be for the second time in five years due to a previous bankruptcy filing in January 2017.
Avaya then exited the chapter 11 measures before listing on the New York Stock Exchange in 2018.
Things did initially appear to be on the up for Avaya; however, it has been a troubled few months for the vendor, which has seen the company change CEO and announce redundancies.