Despite filing for chapter 11 bankruptcy protection in the US, Avaya's Australian arm says it's doing just fine

Avaya video conferencing. (Source: Avaya)

Digital telecommunications company Avaya filed for chapter 11 bankruptcy protection in the United States overnight, but the Australian arm insists it is business as usual despite the turmoil.

Reuters reported Friday that Avaya filed for chapter 11, which is similar to voluntary administration in Australia, to restructure and reduce its massive $US6.3 billion debt, following a decade of losses.

Avaya has a substantial presence in Australia with offices in five capitals, but it has had troubles of its own, churning through four MDs in the past two years.

“Having transformed over the past 24 months, Avaya Australia & New Zealand closed fiscal 2016 with its strongest quarter in 12 quarters,” an Avaya Australia spokesperson told Business Insider.

“This result mirrors international performance, with global revenue reaching US$958 million, up US$76m from the previous quarter, and EBITDA increasing by 25.3 per cent to US$223m in the same period.”

The company, which produces software and hardware for workplace telephony and video conferencing, said that its good health in Australia was due to “significant” deals with “major” government departments and tier-1 banks.

The spokesperson said the Australia & New Zealand arm would be “on track” for this year, with a strong pipeline of work under the leadership of managing director Peter Chidiac.

Chidiac is the fourth country head in the past two years. In 2014, Tim Gentry left the ANZ managing director post to move to the company’s US operations. His replacement Tony Simonsen stayed for just 16 months before defecting to rival Polycom. Jeff Sheard was promoted internally to fill the gap, but he exited at the seven-month mark – leaving Chidiac to sit in the hot seat in August.

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