RingCentral Taps Advisers for Talks With Troubled Partner Avaya

RingCentral Inc. has engaged Guggenheim Partners and Latham & Watkins for talks with Avaya Holdings Corp. over more than $300 million in contract liabilities, according to people with knowledge of the situation who asked not to be named because discussions are private.

Avaya’s obligations to RingCentral stem from a 2019 agreement where RingCentral prepaid Avaya $375 million, primarily in stock, to cover cost of winning contracts with customers. RingCentral also bought $125 million of Avaya’s preferred equity that’s convertible at $16 per share.

RingCentral, which sells cloud-based communication services to business, has said it believes that the prepaid sales commissions ...