DURHAM – Avaya disclosed certain financial information that it shared with its financial stakeholders this week in a securities filing.
According to a company statement, the firm, which as recently as August warned investors that it held “substantial doubt” about its ability to survive, held recent conversations with stakeholders “regarding a comprehensive resolution to strengthen the company’s balance sheet.”
Avaya, which is headquartered in Durham, laid off workers in September.
But the company’s new CEO, Alan Masarek, who took over following the removal of former CEO Jim Chirico in July, took a positive tone in noting in a statement that the company remains “pleased” by ongoing discussions.
Such discussions, said Masarek, are meant to “enhance our capital structure, increase liquidity and accelerate our investment in innovative products and solutions.”
In the SEC filing, Avaya discloses that its financial projections shared with investors “assume the release of approximately $221 million of restricted cash held in escrow by the end of January 2023, the extension and modification of the Company’s strategic partnership with RingCentral, Inc. and the entry into one or more Transactions.”
The company announced this week that Jill Frizzley, a corporate governance expert, was been appointed to Avaya’s board of directors, following her nomination to the board by RingCentral, pursuant to their strategic partnership, according to a statement.
Further, the filing notes that the firm’s “Projections also do not reflect future changes in general business or economic conditions, or any other transaction or event that may occur and that was not anticipated at the time this information was prepared.”
Tech firm Avaya warns ‘substantial doubt’ about ability to survive; layoffs loom
Simplification is the strategy
Still, an attachment to the 8-K filing that includes a business update from Avaya that has been reviewed by WRAL TechWire show that the company is aiming to simplify its operating structure, as well as its product portfolio.
That could mean a simplified organizational structure, a slide notes, reading “significant functional duplication existed” and “clarity enables a reset with limited impact to profitable revenue.”
The firm is also pursuing “levers to enhance liquidity” that include the receipt of $385 million less fees in January 2023, amendments to its strategic partnership with RingCentral, receipt of $50 million from a transaction closing in the fourth quarter of fiscal year 2023.
Avaya’s most recent filing does not mention any further restructuring or a reduction of staff.
Troubled tech firm Avaya – HQ in Durham – is laying off workers
