Zenith Infotech CEO: We’re Still Interested In Bond Settlement
Zenith Infotech, the private cloud storage provider, and its bondholders remain locked in a court case, but Zenith Infotech CEO Akash Saraf told MSPmentor his company is still interested in working out a potential settlement with bondholders. Saraf also told MSPmentor that Zenith Infotech’s publicly disclosed financial records are consistent with information Zenith Infotech has shared privately with Bombay High Court.
Zenith Infotech defaulted on a bond payment in September 2011. Around the same time, Zenith Infotech sold Zenith RMM to Summit Partners, a private equity firm. Bondholders have since questioned the Zenith RMM spin-off and alleged that Zenith Infotech’s public financial statements don’t match private statements made to Bombay High Court. Saraf said the bondholder allegations are false.
The Zenith Infotech-bondholder case could take months to wind its way through the India court system. Saraf said Zenith Infotech’s stance has remained consistent — the company is willing to discuss a potential settlement with the bondholders.
In the meantime, Saraf said, Zenith Infotech’s business “is doing fine. It hasn’t dropped.” The company, which specializes in BDR (backup and disaster recovery) and private cloud storage solutions for MSPs and channel partners, has expanded its international strategy in recent months, pushing into South America, for instance.
MSPmentor has heard scattered reports about some MSPs — such as FAR — switching to rival cloud storage providers. But other partners, such as Heartland Technology Solutions, say they continue to run Zenith Infotech while monitoring the bond case.