Avaya, Goldman, JPMorgan Face Lender Ire After Loan’s Collapse

Investors fuming over the rapid collapse of a leveraged loan issued in June have hired a law firm to examine legal options over what they view as inadequate disclosures during the debt’s marketing process.

The loan, issued by technology company Avaya Holdings Corp., plunged nearly 30 cents on the dollar over the last week after the company slashed quarterly revenue and earnings expectations and jettisoned its chief executive officer. The rapid change in Avaya’s fortunes — revealed mere weeks after the debt hit investors’ accounts — left some buyers questioning why the information wasn’t disclosed when Avaya was marketing the deal with help from Goldman Sachs Group Inc. and JPMorgan Chase & Co.