Avaya Holdings Corp. is nearing a Chapter 11 filing to restructure its balance sheet as it seeks to turn around its operations and overcome problems with the company’s accounting, people familiar with the matter said.
Avaya revealed earlier this week that it had considered various restructuring proposals from competing creditor groups. A plan, backed by a core lender group including Apollo Global Management, would significantly reduce Avaya’s indebtedness through Chapter 11, wipe out shareholders and, pending the completion of an internal investigation into corporate controls financial information, would provide directors and officers with releases from potential litigation.
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