Avaya, in no-brainer, pulls $1 billion IPO in wake of bankruptcy filing

Enterprise networking and collaboration firm Avaya to keep operating in meantime as it seeks to shed debt

Avaya, in no-brainer, pulls $1 billion IPO in wake of bankruptcy filing

Avaya Holdings has withdrawn the $1 billion IPO offering it filed more than 5 years ago in the wake of last week's filing for Chapter 11 bankruptcy by principal U.S. subsidiary Avaya, Inc.

Avaya was taken private in 2007 after being acquired by two private equity firms for $8.2 billion.

MORE: Why IT shops are disabling wireless AP LEDs

Enterprise networking and collaboration vendor Avaya said last week that its Chapter 11 filing is part of its transition from a hardware to software and services company. The company, which is looking to shed its $6 billion debt load, last week reported decreased revenue and an operating loss for its fiscal year ended Sept. 30.

Avaya will continue operating during its bankruptcy proceedings, and it's possible that the company will sell off parts of its business. It nearly ditched its call center business last year, but now says it plans to hang on to it.

Network World columnist and industry analyst Zeus Kerravala is among those urging Avaya not to sell its networking business, which he sees as its best catalyst for growth.

Avaya in the past year has pushed further into the cloud, with new network management offerings, bolstered its unified communications offerings with the Equinox platform, and has continued to score new customer deals, including with the New York Mets baseball team.

MORE: Best & Most Promising Tech Jobs of 2017

Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.

Copyright © 2017 IDG Communications, Inc.