There is NEVER a Rainy Day Fund for a publicly traded company. Ever. There is no such thing, per Accounting Rules. If there was money it would be held and referred to as "Reserves". A reserve is profits that have been appropriated for a particular purpose. AVAYA is a company that is drowning in debt. Debt that will soon likely be tied to defaulted loans. Thus, very expensive debt. Thus its only cash is borrowed, and it's borrowed with such high interest rates that for every dollar of cash they have they owe about .30/dollar in interest and fees. Thats very upside down. That also means that each dollar they bring in is like only bringing in .60-.70/dollar in revenue.
Im overwhelmed by Avaya employees lack of basic business knowledge, accounting rules or general reality. Honestly, it goes to show that Avaya leadership liked to cultivate ignorance and YES-peoole. It shows few people who remain have ever earned a proper spot in corporate America outside of Avaya. The volume of people who lack awareness and flippantly believe Avaya will "figure it out" or that they are "Too Big to Fail" almost have earned the painful reality check they are soon to be thrust into
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WHERE IS THE DUDE WITH CASH IN THE SUITCASE YOUR PROMISED US? HE CAN USE THE CASH AT ANYTIME YOU TOLD US???
I was hesitant to trust, yet this feed is solid. More employees should engage. The shareholders are fighting back to avoid bankruptcy. And based on what they are sharing, we all have a right to avoid it, and there is no reason for Avaya to be labeled for bankruptcy, except for the later bond holders who are the ones who are playing pretty dirty to prevent Alan from being able to do his job.
This is the first time I feel hopeful. Inspired.
Instead of being pushed resiliency training, push some accounting 101 because it is really sad how many just don't get it. On top of delusional leaders who don't share much, we have employees relishing in business ignorance.
👋👋👋 Where are those Rainy Day Funds to satisfy the creditors? It's interesting that Avaya would chose to extend the 10q for a 2nd time and dealt the 10k if they had money just ready to pull out of a secret safe.
The board has nothing to do with the so called "funds". It's not about "funds" so it is a nonsensical comment.
It's about the debt lenders. The lenders were upset that the financials changed significantly from the time JP Morgan secured the deal to the Q3 Earnings warning.
However, the lenders apper to be negotiating to come to an agreement to not go after Avaya for such a rapid change in #s.
That's it.
Nothing has anything to do with "funds" that the board needs to approve. Period.
The board will give the funds to Masarek that he needs to sort it out, they have access to funds not on the balance sheet, they already gave him $4m signing on fee so no worries, they will adjust goodwill numbers in the balance sheet to bring the funds in, all will be ok
What a difference a few weeks makes. Look at the bond market. Avaya is pulling out of the slump. They still have to make the cuts, yet they can turn this around. There are A LOT of dirty Private Equity Funds trying to force Avaya into their control...yet it wont happen. Dont forget PRIVATE EQUITY is what destroyed Avaya. Rally around Masarek....he's got this.
Nortel was also "Too Big to Fail"