According to people with knowledge of the situation, a group of debt holders hired advisers to help navigate negotiations with the company after a rapid earnings decline.

The people said that Centerview Partners would act as a financial adviser.

The group is made up of older first-lien loan and secured bond holders and is getting legal advice. If the company doesn't file its quarterly results by the end of September, the group will call a default.

After the company issued $600 million in new debt a few weeks ago, the company's debt fell sharply. With revenue plunging and a large chunk of convertible debt maturing in less than a year, the company is no longer able to continue as a going concern.

Representatives for the two companies wouldn't comment. Representatives for the two companies didn't respond to requests for comment.

Some of the people who provided a $350 million loan to Avaya are working with other people to find a solution.

According to people with knowledge of the situation, the convertible notes of the 6.125% bond traded for 20 cents on the dollar. The company's older loans reached a recent low of 46 cents, while the new loan is quoted in the 50s.

(Updates to add forensic accountant hire in second paragraph, comments in fifth.)