January, 11, 2019
To: Avaya Retirees Chapter Members of the NRLN
From: Vern Larson, President, NRLN Avaya Retirees Chapter
Subject: Avaya Financial Results, Supplemental Pension & Bankruptcy Court Payments

Will the new reorganized Avaya survive or should I say “how long can they survive?”

We reviewed the recent Avaya results. Fourth quarter generated $11 million in profit from operations, better, but when interest was applied they lost money. Again…

Interest on the debt was $57 million. Better than the annual $420 million plus interest pre-bankruptcy. Long term debt is $3 billion plus and total liabilities are $5.6 billion. ($8.6 billion)

The positive side Avaya generated $202 million in cash, $57 million from operations, doubling their cash position. Yes, it was a turn around. The first operating profit in a number of years.

Our thinking is they need to grow the business significantly to have any opportunity to service the continuing debt load. First quarter of 2019 has a $29 million loan payment with, we assume, another $50 plus million in interest.

So, let them celebrate the turn around and all of us pray that they continue to grow the business so they can service the debt from current operations. Avaya needs to continue to gain market share and target new Contact Cloud Center customers. So far the Avaya Represented (Union) Sponsored Pension Plan and benefits are still being covered.

To all AVAYA Salaried Management Pension members that were receiving a Supplemental Pension:

If anyone that had been receiving a Supplemental Pension and has not yet received their initial Bankruptcy Settlement Check, it could be because of an incorrect address on file. If you have not received your check contact PrimeClerk at https://cases.primeclerk.com/avaya/Home-Index.

I just had another person that was able to get their check re-issued because of a bad mailing address. Over two months before knowing that a payment had been made.

Received this update from Bob Emberger, Avaya Retiree

Regarding the possible payments that may be available to us from the Bankruptcy Court this year on our settlement on Supplemental Pensions.

When Avaya made its first distribution for our supplemental pensions, it reserved enough money to pay an additional $33.5 million in claims (at the same rate that we were paid). (Docket 2194).

To the extent that any money was left over after those claims were paid, we would all share proportionately in any funds that were left over.

If all of the $33.5 million were disallowed, we would get an additional 2.6% distribution beyond the 19.8% we already received.

Clearly, not all of the claims will be thrown out, but we should get a little bit more this year. Based on the filings made so far, here is the status of the $33.5 as of January 9, 2019.

Claims with no progress (that I can detect): $4,458,370.

There are 5 claims in this group – 2 by Spirent, and one each by SAE Power, Alan Wattenmaker, and the State Board of Equalization. The biggest claim in this group is SAE Power which Judge Bernstein estimated at $3,252,182. At one time, Avaya asked for this claim to be expunged.

Claims with the objection date extended to March 15: $30,761. There are two claims, both by the state of Tennessee

Claims settled for an unspecified amount: $28,619,200. Four (4) claims have been settled confidentially. (Straight Path, AT&T Services, Charter, and Angela Adams DeCarlo) To the extent that these claims were settled for less than the full amount, there may be some money left in the pot. When Avaya files its next quarterly report to the court, we may be able to deduce the amount paid in total, but not the individual settlements.

Claims settled for the scheduled amount: $25,647. Two claims were settled for the amount assumed in Docket 2194. (Frontier Communications and Michael Carson). There is no leftover money from this group to distribute.

Claims settled for $0. Four (4) claims were settled with no payment. (Polycom, City of Albany, County of San Diego, Jon Shaw). These claims were reserved at $367,242.

Funds from these claims will be distributed proportionately when Avaya makes its next distribution.

I intend to keep tracking the status of these until they are all resolved.

Bob Emberger

Bob asked me to post this on our website. I would like to thank Bob for his diligence on keeping us informed regarding these payments. He has been working this hard since before his case in Bankruptcy court.

Also, I want to remind you if you did not make your 2018 contribution to our NRLN Chapter you should have received a postcard from the NLRN in last couple of weeks asking for your annual contribution. Below is the form to mail with your contribution and thank you for your continued support.

The NRLN continues to advocate for legislation to protect Social Security, Medicare and reduce the cost of prescription drugs. January 3, 2019 marked the beginning of the 116th Congress with Democrats controlling the U.S. House of Representatives and Republicans controlling the U.S. Senate. All of the bills that the NRLN lobbied for in 2017 and 2018 that were not passed died at the end of the 115th Congress on December 31, 2018. The NRLN is lobbying for the reintroduction and passage of many of those bills.

Please become an individual contributor to the NRLN Avaya Retirees Chapter or renew your membership by making a contribution of $10, $25, $50, $75 or more. Any amount you can contribute will help and be appreciated. You may make your check or money order payable to NRLN, Inc. and mail it with the Contribution Form below in the enclosed envelope. Or, make your contribution with your credit card on the secure NRLN website at www.nrln.org. Click on the red flashing icon “Contribute to the NRLN” and select the credit card option. If you have already made your 2018 contribution, thank you.

Vern Larson, President,
NRLN Avaya Retirees Chapter
Phone 402-203-6899 Email vernlarson@cox.net

If you know any other Avaya Retirees who are not signed up yet or any current vested Avaya employees or retired vested not yet collecting their pensions please send them the link below and ask them to join the NRLN Avaya Retirees Chapter. All those who have selected the survivor benefit for their pension should have the beneficiary sign up as well to the Chapter at:
http://www.123contactform.com/form-2450889/Avaya-Contact-Registration-Form


National Retiree Legislation Network – Avaya Retirees Chapter Contribution Form The NRLN is a nonprofit, tax-exempt organization. Contributions are not tax deductible.

Name__________________________________

Age __under 55; __ 55-64; __ 65 or over

Address________________________

City_____________State___Zip_____Zip+4 ____

Phone___________________

Email Address (if available)____________________________

I get my retirement benefits from______________________________(name of company)

Mail with your check or money order (no cash) for $25, $50, $75 or more (any amount will be appreciated) payable to NRLN, Inc., PO Box 69051, Baltimore, MD 21264-9051. Or, make a contribution with your credit card at www.nrln.org. Click on the red flashing icon “Contribute to the NRLN”.

NEWS FOR AVAYA MEMBERS


Avaya Brings Back IBM, AT&T Vet to Drive Services Adoption
By Edward Gately; Channel Partners ~ Apr 06, 2018

Mobile at EC18: Avaya Shakes Up the Service Provider Business
By Michael F. Finneran: No Jitter ~ Mar 30, 2018

Avaya Creates Unique Mobile CX Solution
By Sheila McGee-Smith; No Jitter ~ Mar 12, 2018

Avaya emerges from Chapter 11 after restructure
By James Pearce; Global Telecoms Business ~ Dec 18, 2017

Avaya to pay PBGC $340 million as part of restructuring agreement
By Hazel Bradford; Pensions & Investments ~ Nov 29, 2017

U.S. judge clears Avaya Inc to exit bankruptcy
By Jim Christie; Reuters ~ Nov 28, 2017

S&P 500’s Biggest Pension Plans Face $382 Billion Funding Gap
By Brandon Kochkodin and Laurie Meisler, Bloomberg - Jul 20, 2017

Extreme Networks Completes Acquisition of the Networking Business from Avaya, Inc.
Avaya Press Release – Jul 17, 2017

Avaya, bankruptcy and the state of the changing communications market
By Justine Brown; CIO Dive ~ May 23, 2017

Avaya sells networking business to Extreme Networks for $100 million
By Natalie Gagliordi ; ZDNet ~ Mar 07, 2017

Avaya's Chapter 11 filing sends waves of disruption
By Guy William Clinch, NetworkWorld - Feb 10, 2017

Legally & Practically: What Avaya's Chapter 11 Means to Customers
By Marth Buyer, No Jitter - Feb 8, 2017

Avaya Partners Relieved by Chapter 11 Filing, Decision Not to Sell Call-Center Business
By Edward Gately; Channel Partners ~ Feb 01, 2017

Avaya granted $425m loan from US court
By James Pearce; Capacity Media ~ Jan 23, 2017

Avaya files for Chapter 11 bankruptcy, won't sell contact center assets
By Larry Dignan, zdnet - Jan 19, 2017

Telecom Company Avaya Files for Bankruptcy
Reuters report in Fortune – Jan 19, 2017

Multibillion-dollar phone firm deal may fall apart
By Josh Kosman, New York Post - Jan 4, 2017


Avaya Q4 2018 Financial Results - January 2019

Click here to review text and graphics on Avaya's 4th Quarter 2018 Financial Results.

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