Comment by keytapper

I have been working at avaya for the last couple years and I have been scratching my head trying to understand how this company works and how it got into this situation. On one hand its a company thats hasn't made a profit in 10 years but on the other it takes in a billion every quarter. When you look at the numbers it turns out it is paying tens of millions to service the interest on its massive debt... it would be quite profitable if it was not for this. So where did the debt come from? Most of it seems to have come from the leveraged buyout it underwent 10 years back. So now they file for chapter 11 bankruptcy but who is getting burned here? Anyone who bought an avaya bond will lose out but what about the private equity company that owns the place? The way the company was allowed to grow its debt seems like they just didnt care as if it wasnt going to hurt them when bankruptcy finally beckons.