The U.S Bankruptcy Court for the Southern District of New York confirmed Avaya’s second amended Chapter 11 plan of reorganization. As a result, Avaya expects to emerge from its restructuring process before the end of this year.

“The court’s approval of our plan is the culmination of months of hard work and extensive negotiations among our various stakeholders,” said Jim Chirico, Avaya’s president and CEO. “In the coming weeks, Avaya will emerge from this process stronger than ever and positioned for long-term success, with the financial flexibility to create even greater value for our customers, partners and stockholders.”

Avaya projects to have approximately $2.925 billion of funded debt and a $300 million senior secured asset-based lending facility available upon emergence from chapter 11 protection, a substantial reduction from the approximately $6 billion of debt on its balance sheet when Avaya commenced its financial restructuring. This revised capital structure is expected to result in more than $200 million in annual cash interest savings compared to fiscal year 2016.

As previously announced, Goldman Sachs and Citibank are leading the post-petition financing. Centerview Partners and Zolfo Cooper are Avaya’s financial and restructuring advisors, and Kirkland & Ellis is the company’s restructuring counsel.

Avaya is a global business communications company, providing an expansive portfolio of software and services.

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