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A top-notch restructuring group, capable of handling the biggest and the most difficult restructuring from either company side or creditors’ side.

- Chambers USA, Band 1 Bankruptcy/Restructuring (Nationwide and NY)

Paul, Weiss Advises Ad Hoc Lender Group in Avaya Restructuring

Paul, Weiss represented an ad hoc investor group of first lien lenders in the successful completion of Avaya Holdings Corp.’s prepackaged chapter 11 restructuring. Avaya, a global leader in communication and collaboration solutions, emerged from bankruptcy with total debt trimmed by more than 75% and approximately $650 million in liquidity.

Under a plan confirmed by the U.S. Bankruptcy Court in the Southern District of Texas, two ad hoc lender groups converted the $500 million new-money DIP term loan they provided to fund the chapter 11 cases into an exit term loan and Avaya’s asset-based lender syndicate agreed to roll their $128 million asset-based lending DIP facility into an exit facility on similar terms. Additionally, certain members of the investor group provided $150 million of additional new-money financing through a fully backstopped debt rights offering that was funded at exit as part of Avaya’s exit term loan facility.

The Paul, Weiss team included restructuring partners Brian Hermann, Brian Bolin and Andrew Rosenberg, and counsel Joe Graham and Douglas Keeton; corporate partners Sarah Stasny, David Huntington and Jeffrey Marell, and counsel Lyudmila Bondarenko and Keerthika Subramanian; executive compensation partner Rebecca Coccaro; tax partner David Mayo; and antitrust counsel Yuni Sobel and Marta Kelly.

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