U.S. Bankruptcy Court Judge OKs $425 Million for Avaya Loan

A U.S. bankruptcy court judge granted Avaya Inc approval on Friday to tap $425 million of the $725 million loan proposed to carry the telecommunications company through its restructuring, funds the company said were essential to continue operations. Avaya filed for Chapter 11 bankruptcy protection on Thursday to cut its debt of about $6 billion after efforts to sell its call center business and reach a consensual deal with creditors failed. The bankruptcy underscored the challenges telecoms companies face as they transition to software and services from hardware.