Avaya Holdings Corp. on Tuesday filed for chapter 11 for the second time in six years as it struggles to transform itself from a traditional office telecommunications equipment business into a subscription-based software provider, WSJ Pro Bankruptcy reported. The company said that it filed in the U.S. Bankruptcy Court in Houston with a plan supported by most senior lenders to cut its debt by more than 75%, to roughly $800 million from $3.4 billion, and turn the page on an earnings miss last year that depressed the prices of its debt and stock. Avaya said that it has received commitments for $628 million in debtor-in-possession financing, including a new $500 million loan from an investor group led by Apollo Global Management Inc. and Brigade Capital Management LP, as well as a $128 million credit facility from a bank syndicate led by Citigroup Inc. Certain members of the investor group have also agreed to provide an additional $150 million in new money through a rights offering. The company said that it expects to complete the prepackaged bankruptcy process in 60 to 90 days.
