Avaya files for bankruptcy
It had been speculated for a while but its now finally happened. Contact Centre technology supplier has filed forBankruptcy under Chapter 11 of the U.S Bankruptcy Code. In a statement released by the company they have announced that they will continue to trade with Steve Kennedy, CEO of Avaya commenting that “filing (The Chapter 11) is a critical step in Avayas ongoing transformation to a successful software and services business.
Efforts to sell the contact centre business last year did not materialise and this move is to try and reduce its debt load of about $6.3billion. According to the company statement “After extensive evaluation in consultation with its financial and legal advisors, the Avaya Board of Directors has determined that focusing on the Companys debt structure is paramount and a sale of the Contact Center business at this time would not maximize value for Avayas customers and all of its stakeholders.”
With hundred of contact centres using the Avaya platform in Australia there is no doubt the news would be alarming. With interest alone currently costing over $400 million a year it’s hard to believe there are sufficient resources to continue investing in their products. With Genesys recently purchasing Interactive Intelligence and several cloud based providers emerging the contact centre technology market is changing quickly.
Kennedy sought to reassure customers however commenting that:
Our business is performing well, and we are confident that we can emerge from this process stronger than ever, as this path is a reflection of our debt structure, not the strength of our operations or business model.
The full media release can be read on the Avaya website