Avaya nearing Chapter 11 bankruptcy filing, WSJ reports

After disclosing earlier this week that it has reviewed various restructuring proposals from competing creditor groups, Avaya (AVYA) is nearing a chapter 11 bankruptcy filing to restructure its balance sheet, The Wall Street Journal’s Alexander Gladstone, Andrew Scurria, Alexander Saeedy and Matt Wirz report. According to people familiar with the matter, one plan, supported by a senior lender group including Apollo (APO), would significantly reduce Avaya’s debt load through chapter 11, wipe out shareholders and provide directors and executives with releases from potential litigation, while another plan, supported by holders of Avaya’s unsecured bonds, proposes to restructure the company out of court, including by issuing new bonds and loans to retire some old debt. Reference Link