The judge overseeing the bankruptcy of Avaya Inc. said yesterday that he would confirm the telecommunication company’s chapter 11 plan, bringing its nearly year-long effort to reorganize its finances effectively to a close. Bankruptcy Judge Stuart Bernstein said at a hearing that he was satisfied with the plan, which marked a third try by the communications software and services provider for a blueprint for emerging from bankruptcy. The plan provides holders of first-lien debt with 90.5 percent of stock in the reorganized company and holders of second-lien notes with a pro rata share of 4 percent of stock and warrants for an additional 5.1 percent of the shares. General unsecured creditors such as vendors will receive $57.5 million in cash, and the government’s pension insurer, the Pension Benefit Guaranty Corp., will receive $340 million in cash and 5.5 percent of shares.
