Avaya Holdings Corp filed for Chapter 11 bankruptcy and secured a financing of $780 million as it restructures its business, the IT firm said on Tuesday.
Avaya said it will reduce its debt by more than 75 per cent from nearly $3.4 billion to about 800 million upon completion of the restructuring process.
The new capital is expected to provide substantial liquidity to support Avaya during the process and beyond, it said.
The cloud communications company said it would continue to serve customers and partners without interruption and expects to complete the process in 60 to 90 days.
Avaya had said there was substantial doubt about its ability to continue as a going concern in light of a debt maturity in 2023, according to a Wall Street Journal report in December.
Avaya has also announced job cuts to reduce costs earlier in the month of September. Avaya's shares fell nearly 99 per cent last year.
Evercore Group is serving as financial advisor to Avaya for the process.