Avaya files for bankruptcy, about 5 years after emerging from previous bankruptcy

Avaya Holdings Corp. said Tuesday that it and all of its U.S. subsidiaries filed for bankruptcy, a little more than five years after emerging from its previous bankruptcy. The business communication company said it entered a financial restructuring agreement that will reduce its debt by more than 75%, from $3.4 billion to about $800 million. The company said it has secured about $780 million in financing, including $628 million in debtor-in-possession financing, that will allow it to operate its business as usual. The stock, which was currently halted for news, has plummeted 82.5% over the past three months, while the S&P 500
SPX,
-0.03%
has gained 4.2%. The company last emerged from bankruptcy in December 2017, about 12 months after filing.