Broadband Telecom: Chapter 11 Discovery Fight Over Records and Servers
Broadband Telecom's chapter 11 cases in the Eastern District of New York have turned on Rule 2004 discovery, direct server access, and recovery of books and records from an outsourced operating environment, with no confirmed plan or sale order yet reflected in the indexed docket.
In this article
Broadband Telecom, Inc. and six affiliated debtors are in chapter 11 in the Eastern District of New York, where court activity has centered on regaining control of books, records, and servers tied to an outsourced operating structure in India. The debtors have extended exclusivity and assembled a cross-border advisory team, but no confirmed plan, sale order, or official committee has appeared in the docket.
The debtors first filed chapter 11 in the Eastern District of New York on August 12, 2025, with two additional affiliates filing on October 20, 2025. Outside coverage tied the cases to lenders' fraud allegations involving Bankim Brahmbhatt, Broadband Telecom, Bridgevoice, and Carriox affiliates, while later reporting described the fight over access to the vendor and server environment and the CRO's push for full access to records. The court filings confirm the same dispute over records access.
| Debtors | Broadband Telecom, Inc. and 6 affiliated debtors |
| Court | U.S. Bankruptcy Court, Eastern District of New York |
| Case Number | 25-73095 |
| Petition Date | August 12, 2025 |
| Judge | Hon. Louis A. Scarcella |
Why Broadband Telecom filed chapter 11
The amended Rule 2004 motion says the debtors outsourced substantial administrative functions to Bankai Infotech in India under an October 2022 arrangement and later found themselves unable to obtain unrestricted access to records, servers, and other data needed to verify historical operations. The motion ties that information gap to lender litigation that challenged the legitimacy of the reported business and revenue base.
That same filing says the estates needed direct access to records instead of relying on second-hand reports from Bankai Infotech. Outside reporting framed the broader dispute as part of a case in which HPS Investment Partners and other lenders alleged that more than $500 million in loans had been advanced against fabricated receivables, and Reuters-follow reporting said federal authorities were also probing the telecom firms tied to the dispute. The chapter 11 filing did not immediately pivot into a sale or plan solicitation process. Instead, it moved into document recovery, examinations, and reconstruction of the operating record.
A two-wave filing across seven debtors
The amended Rule 2004 motion identifies an initial debtor group that filed on August 12, 2025 and a second group that filed on October 20, 2025. The debtor roster in the lead case includes BB Servicer, LLC, Carriox Telecap LLC, Carriox Towercap LLC, Bridgevoice, Inc., Broadband Telecom, Inc., BB Capital SPV, LLC, and Carriox Capital II LLC.
The exclusivity extension order set different deadlines for the two debtor groups. The order extended plan exclusivity for the initial debtors to May 8, 2026 and solicitation exclusivity to July 7, 2026, while giving the subsequent debtors until July 17, 2026 to file a plan and September 15, 2026 to solicit acceptances. The order states that no objections were filed to that relief.
Rule 2004 discovery became the center of the case
The court entered an amended Rule 2004 order on February 6, 2026 authorizing subpoenas to Bankai Infotech Limited, Coresite Data Center LLC, Panamax Inc., Fidelity Capital Partners, LLC, Fidelity Funding Services, LLC, and Prakash Singh Chaudhary. The order required each subpoena target either to produce responsive non-privileged documents within 14 days or file an objection within the same period, with privilege logs due on the same timetable if privilege was asserted.
The same order authorized the debtors to obtain direct physical access to servers held at the co-location site and to copy, image, or take possession of those servers.
The discovery program expanded after that order. The docket shows separate Rule 2004 motions and orders involving former auditors, accountants, contract counterparties, affiliates, and former U.S.-based employees. The later order covering former U.S.-based employees kept the same basic 14-day production schedule and 15-day deposition timetable but added a short letter-brief procedure for subpoena disputes.
Cash stayed positive while the estates investigated
The December 2025 monthly operating report for Broadband Telecom shows current-month receipts of $2,452,750, operating disbursements of $67,013, and net cash flow of $2,385,737. It also lists opening cash of $12,863,869 and ending cash of $15,249,606, plus $761,787 of disbursements made by third parties for the benefit of the estate.
The January 2026 monthly operating report also reported positive month-end cash movement. By March 2, 2026, Klestadt stated in its first interim fee application that the estates held approximately $17,923,982.91 in cash on hand.
The debtors built a cross-border advisory structure
The court approved Khaitan & Co. LLP as special Indian counsel nunc pro tunc to November 11, 2025. The retention order says Khaitan would handle Indian and other foreign-jurisdiction legal services, including negotiations with creditors, asset-protection work, and advice on the debtors' rights and obligations.
The debtors later sought to retain Alvarez & Marsal India Private Limited as financial advisor. That application says A&M India would analyze corporate records and financial statements, review banking transactions, assist with site visits in India, and assess the operations of Bankai-related entities. The debtors also filed applications to retain Kroll as claims and noticing agent and Kroll as administrative advisor, establishing formal claims administration and additional case-management support.
Outside coverage of the early case identified Klestadt Winters Jureller Southard & Stevens as lead bankruptcy counsel for the affiliated debtors. The retention applications span U.S. bankruptcy counsel, Indian litigation counsel, India-based financial advisory, claims administration, and administrative advisory services.
A trustee fight surfaced even without a committee
The amended Rule 2004 motion says no trustee, examiner, or official committee had been appointed through December 2025. Even so, the March 2, 2026 Klestadt fee application reports time spent responding to a U.S. Trustee motion to appoint a chapter 11 trustee and says that motion was denied without prejudice.
The U.S. Trustee's motion preceded the formation of any official committee or the filing of any plan or sale motion. The same fee application seeks $655,873.50 in fees and $17,028.62 in expenses for the period from August 12 through December 31, 2025.
What has not happened yet
No confirmed plan has been filed, disclosure statement, sale order, or other transaction document. The exclusivity extension order kept the debtors in control of plan timing into mid-2026, but the primary filings to date are discovery orders, subpoena requests, and retention applications. Plan exclusivity for the initial debtors runs through May 8, 2026, with solicitation exclusivity through July 7, 2026.
Frequently Asked Questions
When did Broadband Telecom file chapter 11? The initial debtor group filed on August 12, 2025, and two additional affiliates filed on October 20, 2025, according to the amended Rule 2004 motion.
Who is the judge in the Broadband Telecom bankruptcy? The case was originally before Chief Judge Alan S. Trust and was reassigned on February 2, 2026 to Judge Louis A. Scarcella.
Is this case a sale process or a plan confirmation case yet? No. The docket activity has centered on Rule 2004 discovery, server access, retention applications, and exclusivity extensions. No confirmed plan or sale order has been entered.
What did the Rule 2004 orders allow the debtors to do? The amended Rule 2004 order authorized subpoenas to multiple parties and let the debtors obtain direct access to, copy, image, or take possession of servers held at the co-location site.
Who is handling claims administration? The debtors sought to retain Kroll Restructuring Administration LLC as claims and noticing agent and also filed a separate application to retain Kroll as administrative advisor.
For more chapter 11 case coverage built from court filings, see the ElevenFlo bankruptcy blog.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. Read our full disclaimer.