Auckland, 25 October 2017 – Avaya has hit another significant milestone to get out of Chapter 11,¬†announcing an agreement with its major creditors’ groups. The agreement, called the Global Resolution, has support from holders of more than two-thirds of both Avaya’s first lien and second lien debt, and paves the way to exit from Chapter 11 by the end of 2017.

Avaya also announced that it has launched the process for funding the $2.9 billion of debt it plans to hold when it emerges from bankruptcy. The reduced debt load (about half of what is was when it entered in to Chapter 11), will save it $200 million a year in interest expenses, Avaya said.

Avaya President and CEO Jim Chirico describes the Global Resolution as “one of the most significant milestones in our Chapter 11 process. These developments are good news not only for Avaya, but for our customers and partners as well.”

If the amended plan that includes the Global Resolution is approved, and other necessary approvals are granted, “Avaya expects to complete its restructuring and emerge from Chapter 11 protection in 2017,” the company said.

Click here to see the full Avaya release.