A U.S. bankruptcy court judge granted Avaya Inc. approval on Friday to tap $425 million of the $725 million loan proposed to carry the telecommunications company through its restructuring, funds the company said were essential to continue operations, Reuters reported. Avaya filed for chapter 11 protection on Thursday to cut its debt of about $6 billion after efforts to sell its call center business and reach a consensual deal with creditors failed. The company's lawyers said a significant portion of the $725 million loan, extended by an affiliate of Citigroup Inc. for up to a year, was funded by Avaya's existing lenders. Avaya plans to return to bankruptcy court today for approval on other expenses.
