Avaya files for bankruptcy in US; India operations to continue

Communications solutions provider Avaya Inc, reeling under huge debt, has filed for bankruptcy protection in the United States but operations in India, one of its key markets, will continue.
It said that India is among the top ten markets for Avaya in terms of turnover.
The company has 2,200 employees in India.
"In the last three years we have seen around 13 -19 per cent growth and we expect this growth to continue in future. Avaya India is working closely with state governments on providing emergency response systems and work on digitisation of education initiatives as major target areas," Avaya India said in a statement.

Over 30 per cent of the company's products and solutions development are done out of India's R&D centres - Bangalore, Pune and Hyderabad.
In a separate statement, Avaya Inc said it has commenced a formal proceeding to restructure its balance sheet to better position itself for the future.

To facilitate this restructuring, the company has filed voluntary petitions under chapter 11 of the U S Bankruptcy Code in the US Bankruptcy Court for the southern district of New York.
"The company's foreign affiliates are not included in the filing and will continue normal operations," it added.
"We have conducted an extensive review of alternatives to address Avaya's capital structure, and we believe pursuing a restructuring through chapter 11 is the best path forward at this time," said Kevin Kennedy, Chief Executive Officer of Avaya.

"Reducing the company's current debt through the chapter 11 process will best position all of Avaya's businesses for future success," he added.