Avaya shared several negative financial indicators this week, potentially moving closer to its second bankruptcy in six years. The Wall Street Journal reported that the company has reviewed restructuring offers from different creditor groups. Apollo Global Management’s proposal would reduce Avaya’s debt through a Chapter 11 filing; the plan would also give directors and executives releases protecting them from potential shareholder litigation pending the completion of a review into the company’s financial reporting controls, the Journal reported.
Financial markets publication Seeking Alpha reported that Avaya’s actual GAAP revenue for its fiscal year 2022 Q3, which ended on June 30, 2022, was 17% below guidance. Additionally, Avaya also shared guidance from its fourth quarter, projecting a 40% year-over-year decrease and a negative free cash flow of roughly $420 million for 2022.
