So, the courts lifted the stay, allowing the suit to continue - despite Avaya arguing that it should not be lifted. Yet, the "leaders" say that it doesn't mean anything because the it was lifted only to allow Avaya to (insert some BS legal jargon here). Seriously? It was lifted because it has merit and the suit will go on. It will take a long time, but Blackberry will prevail eventually. The question is to what extent. The bigger issue is that regardless whether they win or not, the uncertainty is causing creditors to back away from the restructuring deal. Best case, they'll have to reserve the amount claimed in the lawsuit ($1.5 billion) as a contingency in case Blackberry does win. That throws the profitability picture way out line, making the whole deal unappealing and unlikely to go forward
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I'm afraid this is all too true. Avaya was late with cloud and even now it's not quite there compared to others in the market. On-prem solutions are dead or dying and the smart manufacturers are jumping in to help companies transition. Every day I'm seeing previously loyal customers back away from Avaya - either delaying decisions or going to competitors. Partners are hedging their bets and aligning with alternative manufacturers. Competitors are AGGRESSIVELY going after those partners and customers and without a compelling reason to stay with Avaya, they'll have no choice but to move. The FUD factor is in full force and it's working. It's disappointing because under any type of real leadership, this would not have happened. Blame high interest payments or whatever, but a responsible CEO would have seen it coming and taken the necessary steps to deal with it, instead of constantly bending over for Silverlake and taking the company down. Miserable, incompetent losers. Yes, I'm bitter. I've worked here along side many great people for many years and it's disheartening to see Avaya's demise because of incompetence and greed.
C'mon people. You don't need an MBA to see where this is going. It's OVER! Just look at the facts:
-Management has been silent.
-BlackBerry lawsuit stay lifted.
-Creditors rejecting restructuring plan.
-Revenues are way down.
-New customers non-existent.
-Layoffs have started a major reorg is coming soon.
-Oh and let's not forget that our illustrious leaders have all put in their claims for KEIP. LOL.
This thing is melting down fast and there will be a Chapter 7 announcement by September - just before end of fiscal year.
All you delusional Avaya loyalists need to get your head out of the sand and move the "F" on now. There is zero chance that it will exit Chapter 11.
Too bad. So sad.
A quick sum of only the top Claims listed in Prime Clerk gives a rough estimate of 16 Billions (not counting the 1.5 B stated here)... I don't know if all those claims are valid or correct, but I really also suspect that we are heading to Ch 7
ch. 7 or Nortel^2
Tough time for Avaya