The fate of Avaya has finally been determined. It’s not being broken up, shut down or having parts stripped off it in a fire sale. Instead, Avaya filed for Chapter 11 bankruptcy to help shed the $6 billion debt load that is weighing the company down.
The question for the company now is what happens next? Obviously the business will be restructured. I believe the management team will keep the call center and UC businesses intact, as they go together like “rama lama lama ka dinga da dinga dong.” But what happens to the networking business? Post restructuring the networking division might be a more attractive asset to buy because many of the things weighing it down, such as pensions and debt, won’t be an issue. Avaya could sell it, then use the money to make an acquisition that could bolster its UC and CC business.
To read this article in full or to leave a comment, please click here