Zenith Infotech's bondholders, QVT Financial, have sued and
will take the cloud company to a Bombay court on Wednesday, just a few weeks
after Zenith Infotech defaulted on repayment of its bonds.
Moneycontrol.com
reports the case will be heard in Bombay High Court on Oct. 26 and has been
filed against Zenith Infotech, its promoters, all subsidiaries and private
equity investor Summit Partners which bought a majority stake in Zenith RMM on
Sept. 26, five days after the bond default.
Zenith Infotech's initial default was on $33 million in foreign
currency convertible bonds. That default has apparently triggered remaining
bonds to come due for a total of $85 million.
Zenith Infotech confirmed the default and issued a statement
on Oct. 14 to partners and customers stating that the company is financially
sound and that it is working to renegotiate the bonds.
Last week a spokeswoman told Channel Insider that Zenith
Infotech would continue with its planned product roll outs and conference
schedule.
Zenith
RMM CEO Michael George has told Channel Insider that his new company’s
first concern is to take care of its partner customers, including those who are
supporting any of Zenith Infotech’s end points.
That said, George added that partners have asked that Zenith
RMM look into some kind of guarantees or alternatives to help in case Zenith
Infotech is unable to resolve its issues with bondholders.
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