Skip to content

Avaya Loan's Rapid Meltdown Reveals Leveraged Debt Market Risks

  • Creditor groups weigh options after poor results revealed
  • Company’s new debt collapsed following earnings miss

Avaya Holdings Corp. isn’t exactly a household name in US financial circles. It’s a small-ish company in an unglamorous part of the technology business.

And yet it’s possible that years from now, Avaya, a provider of office telecommunications services, will be remembered as one of the first victims of corporate America’s post-pandemic financial reckoning. There are plenty of oddball elements to the story that are specific to Avaya -- like the company’s dramatic earnings revisions and internal investigations -- but in a larger sense, its sudden collapse to the brink of default underscores how quickly the mania captivating Wall Street investors has ended as interest rates soar and the economy cools.