Last updated: November 28, 2016
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May file for protection from creditors
US buyout firm Clayton, Dubilier & Rice LLC (CD&R) is in the lead to acquire the call centre business of debt-laden telecommunications equipment company Avaya Inc for around $4bn, it has been reported. The Wall Street Journal has reported that Avaya could file for Chapter 11 bankruptcy protection before the end of the year, but a sales on this scale could buy it time to avoid this. Avaya is owned by Silver Lake and TPG Capital which bought it in 2007 for around $8bn. It has not made a profit since then, it is understood.
Avaya has been looking for ways to lessen its $6bn debt load, as it transitions from a legacy hardware business to a software and services company. The sale of that unit would significantly aid those efforts.