BROADCAPTAIN SEEKS COURT ORDER TO UNSEAL INDIA VENDOR DATA

The chief restructuring officer for Broadband Telecom, a company accused of fraud by lenders including HPS Investment Partners, is seeking court approval to subpoena a key Indian vendor with links to the firm's founder and owner according to Bloomberg reports. The move follows a visit to the vendor's offices in mid-November, where the vendor refused to provide all requested information according to Bloomberg reports. This development adds to a mounting legal and financial crisis for Broadband Telecom and its parent entities.

Broadband Telecom's chief restructuring officer, John D. Baumgartner, has requested court permission to examine Bankai Infotech Limited, a firm that maintains the bankrupt telco's servers and records under an outsourcing agreement according to Bloomberg reports. Bankai Infotech is affiliated with the Bankai Group, whose founder, Bankim Brahmbhatt, has deep ties to the vendor and may have family members currently associated with it according to Bloomberg reports. The court filings highlight concerns about access to critical data that could reveal potential misconduct.

Creditors have already accused Broadband Telecom and its sister entity, Bridgevoice, of engaging in fraudulent activities involving falsified collateral, including emails from fake domains and forged signatures according to Bloomberg reports. These allegations are tied to an asset-based loan facility that relied on consumer loans and trade receivables. The scope of the misconduct has drawn scrutiny from the U.S. Attorney's Office in Brooklyn, intensifying legal pressure on the company and its leadership according to Bloomberg reports.

Why the Standoff Happened

The refusal by Bankai Infotech to cooperate fully with the audit has raised concerns about data integrity and potential obstruction according to Bloomberg reports. The vendor's role in managing Broadband Telecom's servers and customer data means that the information it holds could be critical to understanding the extent of the alleged fraud according to Bloomberg reports. Court documents suggest that Brahmbhatt, who founded the Bankai Group in 1989, may still have indirect influence over Bankai Infotech according to Bloomberg reports.

Baumgartner's site visit to India was intended to address these concerns and verify the accuracy of the data held by the vendor according to Bloomberg reports. However, the refusal to comply with data requests has led to a legal escalation, with the chief restructuring officer now seeking court-ordered access to the records according to Bloomberg reports. The situation underscores the complexity of the financial arrangement between Broadband Telecom and its outsourcing partners.

Legal and Financial Fallout

Broadband Telecom and Bridgevoice filed for bankruptcy in August 2025 according to Bloomberg reports. Brahmbhatt, the founder, has since filed for personal bankruptcy. The collapse of the company has left creditors in a legal limbo, seeking to recover funds through investigations into potential fraud according to Bloomberg reports. The involvement of Bankai Infotech and its parent group adds a layer of corporate entanglement to the case, complicating efforts to trace the full scope of the financial misconduct.

In addition to Bankai Infotech, the court filings indicate that other entities, including Panamax and Fidelity Capital, may also be targeted for examination according to Bloomberg reports. These firms are linked to Broadband Telecom's server infrastructure and leasing agreements, suggesting that the legal inquiry will extend beyond the immediate vendor to examine the broader network of affiliated companies according to Bloomberg reports.

What This Means for Investors

The ongoing legal proceedings raise significant questions for investors and creditors. The potential misuse of financial data and the reliance on fraudulent collateral could indicate systemic issues within the company's financial reporting and operations according to Bloomberg reports. If confirmed, these practices could undermine confidence in the broader telecom sector and prompt increased regulatory scrutiny.

For now, the focus remains on securing access to critical data through court proceedings. The outcome of these efforts could determine the path forward for creditors seeking to recover losses and for regulators aiming to clarify the extent of the alleged misconduct. As the case unfolds, the broader implications for corporate governance and financial transparency in the telecom industry may become clearer.