(Bloomberg) -- A group of Avaya Holdings Corp. lenders who saw their recently issued loan holdings plunge nearly 25% in two months sent a letter to the struggling telecommunications software company asking it to preserve cash and provide new business projections, according to people with knowledge of the matter.  

The lenders, who hold more than half of the company’s new $350 million loan, are asking the company to hold on to funds it had placed in an escrow account to pay off convertible bonds due next year, said the people, who asked not to be identified because the matter is private.

The group, which is working with Glenn Agre Bergman & Fuentes and FTI Consulting, also asked for more clarity on how the company represented itself when it raised $600 million of new debt in June, only to project a steep decline in financial performance and oust its chief executive weeks later. The company later delayed filing results through June 30 amid ongoing internal probes. 

A representative for Avaya declined to comment. Glenn Agre and FTI didn’t respond to requests for comment.

Holders of Avaya’s older debt told agent Goldman Sachs that they intend to call a default if the company fails to file its quarterly results by the end of a grace period. 

In response, Avaya posted its quarterly financial results to private investors, the people said. CreditSights estimated that the company has until mid-September to avert a default.

Avaya is working with advisers to help it tackle convertible notes due 2023, which trade around 35 cents on the dollar, according to Bloomberg-compiled data. 

The company’s 6.125% note due 2028 and older term loan are quoted between 58 cents and roughly 60 cents, the people said. The newly issued loan due 2027 is quoted around 66 cents, down from roughly 90 cents in late June, they said.

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