Telecommunications company Avaya Inc. is weighing a chapter 11 bankruptcy filing and nearing a deal to sell its call-center software unit in an effort to pare its heavy debt load after years of losses, the Wall Street Journal reported on Thursday. The company, which was taken private by buyout firms Silver Lake and TPG in 2007, could file for chapter 11 protection as soon as next month. The filing would likely come after it reaches a deal to sell the call-center software business. Clayton Dubilier & Rice LLC is among the potential buyers that participated in the most-recent round of bidding for the unit, which could fetch around $4 billion. Avaya could use the proceeds of the sale to repay some of its senior debt, while other creditors could swap debt for ownership in a reorganized company upon its emergence from bankruptcy. The company’s long-term debt stood at around $6 billion as of June 30, according to a regulatory filing.
