eClerx accepts half of the payment from Lehman as a cure amount
SOURCE: Business Standard
DATE: Oct 6th, 2008
Mohit Soapbox:
eClerx managed to get a little over half of the amount due to it from Lehman as part of their settlement. Better that then nothing! The hard part for the firm and other KPO firms specializing in financial services is going to be to replace that revenue stream which has been lost or is being lost in this downturn.
ARTICLE
Knowledge process outsourcing (KPO) firm eClerx Services has accepted a cure amount of $0.56 million (around 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 (around 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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