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14 March 2017

Avaya Receives Final Approval for $725 Million DIP Financing Facility

Frank Mirecki

In a letter sent to customers on Tuesday, Avaya has confirmed that they have received authorization to access the full amount of DIP financing, bolstering their operations and allowing for minimal disruption during the debt restructuring. The letter can be read, in full, below.

Letter To Customers

Our Valued Customer,

As one of our valued customers, we wanted to provide you with an update on an important debt restructuring milestone that Avaya recently reached.

Following a hearing on March 3, the Court on March 10, 2017, approved the final order authorizing Avaya to access the full amount of our $725 million debtor-in-possession ("DIP") financing facility. As you may know, the Court had previously granted us, on an interim basis, access to $425 million of the $725 million in DIP financing. We expect the DIP financing, combined with Avaya's cash from operations, to provide sufficient funds to support our ongoing business operations and minimize disruption throughout the debt restructuring process.

We expect to file a plan of reorganization this month, and are working closely with key stakeholders and the Court to move through this process as quickly possible. We estimate that the court process could be completed a few months after the plan of reorganization is filed, and we could emerge as early as Summer 2017.

Here is a summary of key milestones in the process and our progress to-date:

Item (in general order of occurrence) Status
Chapter 11 filing Complete
Approval of key motions Ongoing
Approval of the deadline for filing proofs of claim --
Filing of Disclosure Statement and Plan of Reorganization --
Confirmation hearing to approve Plan of Reorganization --
Court approval of plan and emergence from chapter 11 --


We will continue to keep you updated on significant developments and milestones in our debt restructuring process.

Thank you for your continued support and loyalty. Please feel free to reach out with any questions you may have, It is a beneficial resource to Avaya.

Best Regards,

Managing Director and President of Sales, Canada

Frank Mirecki
14 March 2017

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