Lenders Spurned by Avaya Tap Advisers Amid Fresh Debt Plunge

Lenders who helped provide a $350 million leveraged loan to Avaya Holdings Corp. in June are working with FTI Consulting Inc. and Glenn Agre Bergman & Fuentes to explore their options following the company’s poor earnings and internal investigations, according to people with knowledge of the situation.

With revenue plunging and a large chunk of convertible debt maturing in less than a year, Avaya said it now has “substantial doubt” about its ability to continue as a going concern and has hired advisers to address the upcoming maturities, according to a statement on Tuesday. Avaya is getting advice from AlixPartners LLC, Evercore Inc. and long-time counsel Kirkland & Ellis, the people said.