Broadband Telecom is in a chapter 11 posture centered less on a sale or plan process than on stabilization, cash controls, and an expanding investigation into books-and-records access, alleged receivables fraud, affiliate transfers, and server evidence. The debtor group filed after lenders had already sued in Delaware Chancery Court over alleged fraud in the borrowing base for an Alter Domus-agented credit facility, and the restructuring is now being driven by an independent director and CRO seeking operational records from Bankai Infotech and related parties while operating under a final cash collateral order and approved budget, as described in the March 25 status reportDkt. 217.
The underlying business combined wholesale VoIP voice termination with factoring operations, much of it administered from India through affiliated outsourcing provider Bankai Infotech. Early case activity focused on preserving operations and access to payment rails, including the debtors’ request to keep using a JPMorgan Chase London euro account that they described as necessary for international customer receipts and vendor disbursements; that request remained tied to unresolved cash-management and section 345(b) issues after the May hearing, according to the Euro account waiver motionDkt. 214 and the June 11 hearing agendaDkt. 292.
By June, the case had moved deeper into litigation and forensic discovery. The CRO was investigating purported June 1, 2025 bad-debt write-offs totaling roughly $446 million to $641 million, alleged undocumented transfers including more than $20 million to Panamax, postpetition server access or wiping, and continued resistance from former management, affiliates, and overseas service providers. The debtors’ says they were pursuing additional server imaging, credentials from Bankai Infotech and Bankim Brahmbhatt, and related India proceedings, including a June 18, 2026 hearing seeking data and login credentials.
The immediate path is therefore investigative and contested: the debtors are trying to compel Rule 2004 compliance from Raj Brahmbhatt while he seeks to quash the subpoena and obtain sanctions, and Panamax has now filed an adversary complaint alleging unauthorized server imaging and seeking damages exceeding $10 million. Those disputes are teed up through the Raj Brahmbhatt cross-motion to quashDkt. 289, the debtors’ opposition and renewed request to compelDkt. 290, and Panamax’s adversary complaintDkt. 293, leaving the case’s near-term milestones focused on discovery control, data recovery, and court supervision of cash-management issues rather than a disclosed plan or sale transaction.
