Broadband Telecom remains in chapter 11 on an investigation-centered path, operating under cash-collateral arrangements that the court most recently modified to provide the prepetition lenders and Alter Domus, as agent, additional adequate protection through payment of documented professional fees and expenses. The July 27 cash-collateral stipulationDkt. 329 establishes a 14-day invoice-review process and requires payment of undisputed amounts within five business days after that period, while leaving disputes for the bankruptcy court.
The debtors filed on August 12, 2025 against the backdrop of a Delaware Chancery Court action in which their lenders alleged that fraudulent invoices had been submitted as accounts receivable supporting the borrowing base; an August 2025 restraining order limited asset transfers and transactions above $5,000. An independent director and chief restructuring officer were installed the following month, and the court approved a final cash-collateral order and budget in November. By March 2026, the CRO's investigation had identified approximately $190.6 million in undocumented transfers to Bankai International, more than $20 million in undocumented transfers to Panamax, and purported bad-debt write-offs of $446 million to $641 million recorded shortly before the petition date, according to the debtors' March status reportDkt. 217.
The restructuring has consequently focused on stabilizing operations and obtaining control of records held by Bankai Infotech, the related Indian outsourcing provider that performed substantially all administrative and business functions. The debtors reported that Bankai denied the CRO direct access to servers, email, accounting records, bank credentials, and other systems; they pursued Rule 2004 discovery and obtained interim relief from the Gujarat High Court requiring preservation of data and continued services. That record-recovery and forensic work remains central to determining the estate's assets and claims, while the latest cash-collateral order preserves near-term liquidity support. The next scheduled court date is August 20, 2026, for interim fee applications, with objections due August 13 under the joint hearing noticeDkt. 327.
