Avaya Files for Bankruptcy After Earnings Drop, Eyes Quick Exit

Avaya Holdings Corp. filed for bankruptcy Tuesday, felled by a sudden drop in earnings that triggered management upheaval and internal investigations, hurting its ability to rework its debt.

The cloud communications company will keep paying employees without interruption, expects to pay all suppliers in full and plans to exit bankruptcy in as little as 60 days, according to a statement. More than 90% of its secured lenders have signed on to a restructuring plan that would see the company cut its roughly $3.4 billion debt load by more than 75% to around $800 million, according to the statement.

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