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Home  » Business » eClerx accepts $0.56 mn to settle dues with bankrupt US client

eClerx accepts $0.56 mn to settle dues with bankrupt US client

By BS Reporter in Mumbai
October 06, 2008 10:18 IST
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Knowledge process outsourcing firm eClerx Services has accepted a cure amount of $0.56 million (about Rs 2.6 crore) of the $1 million as the full and final payment by its US client that has filed for bankruptcy.

This cure amount was offered under a petition filed by its client under Chapter 11 of the US Bankruptcy Act, in a New York Court. P D Mundhra, executive director, eClerx Services said, "We share a long standing relationship with the client and have agreed to this cure amount in order to bring the issue to resolution.

"We are currently engaged in discussions with both the previous client and their acquirer to determine what support we can provide to the combined entity"

eClerx had in an earlier statement said that its US-based client, with an outstanding receivable worth $1 million (about Rs 4.5 crore), has filed for bankruptcy under Chapter 11 in a New York court.

However, the name of the client was not disclosed. In the recent times, Lehman Brothers was the only bank that filed for bankruptcy.

eClerx earned around 13 per cent of its annual revenues from this client, which is also one of its top five customers in terms of revenues.

The firm said that certain operations of its client, including some that were supported by the company, were to be acquired by a competitor, who is also a customer of eClerx.

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BS Reporter in Mumbai
Source: source
 

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