Last month we informed you that Avaya had filed for Chapter 11 bankruptcy protection for their US business, that this was to enable them to re-structure their debt profile, and that we fully expect them to emerge from this process as a strong business continuing to produce market-leading products.
We can now give you a little more detail on the process they are going through, and can also update you on our experience of working with Avaya day to day throughout this process.
On Avaya’s continuing operations, we continue to receive the same levels of excellent support from them in terms of technical, commercial and account management. This is enabling us to continue to service our customers, and to deliver new projects, without interruption. Our Avaya technical and commercial account team continue to be based in our premises several days a week, and we are continuing to on-board the latest elements of the Avaya product set into Maintel’s portfolio.
Avaya in the UK has appointed a new Managing Director, Ioan Macrae, who is an industry veteran with whom we have an excellent relationship – we are currently working with Ioan on the launch of Avaya’s IP Office into our ICON Communicate platform. Ioan said “I’m really excited be taking on the role of leading Avaya in the UK and am confident that Avaya will emerge from this process as a stronger and fitter company with a terrific portfolio. I’m delighted to be able to continue to work closely with Maintel, bringing the full portfolio of Avaya’s technology and services to market via both on-premises deployments, and in the cloud.”
We also continue to work closely with Avaya internationally – this week we are exhibiting with them at their engage customer event in Las Vegas and participating in the International Avaya User Group conference running in parallel.
Regarding Avaya’s process on the debt restructuring, they have released an update, which you can access here. Avaya continue to operate business as usual during the Chapter 11 process, and the expected outcome is a debt for equity swap to reduce their debt position. They expect to emerge from the Chapter 11 process a stronger and healthier company.
To support them in that aim, the courts have approved all of their motions to continue operations, and they have significant funding from their bankers to allow them to trade through the process.
They have released a solid set of numbers for their FY16 performance, and have also released their quarter 1 FY17 figures, showing healthy margins, a growth in software, services and cloud, and strong customer satisfaction as measured through net promoter score.
If any customers have any questions regarding Avaya, please contact your account manager.
Chief Technology & Strategy Officer