Zenith Infotech Pursues Debt Settlement
Zenith Infotech, after a two-year dance with India’s legal system, is trying to sit down at the negotiating table with debt holders. The company, which promotes converged infrastructure and backup technology to MSPs, defaulted on a bond payment in 2011 and had been facing a potential winding down of the business. But now, clues are emerging that Zenith Infotech wants to negotiate a potential settlement to move its business forward.
According to The Economic Times of India:
“Raj Saraf, Zenith’s promoter…told ET that the company is looking to resolve the issue. “We have made an offer to the bondholders. We have to see if they accept it,” he said. When contacted, some of the bondholders confirmed the development.”
MSPmentor has reached out to Zenith Infotech but has not received additional comment.
According to The Economic Times of India, Zenith Infotech owes about US$90 million to its bondholders. MSPmentor does not know how much money Zenith Infotech has offered bondholders to potentially settle the debt.
Rival cloud storage providers (Axcient, Datto, eFolder and others) have targeted the Zenith Infotech’s channel for migrations. But Zenith Infotech has continued to develop and promote its products for MSPs.
- Backup and Disaster Recovery: The company in August 2013 released an upgrade to its flagship backup and disaster recovery lineup. The BDR-G14 shipped with a new pricing model that included zero per-GB charges.
- Converged Infrastructure: The company’s converged infrastructure platform (TigerCloud) has shifted to a multi-tenant architecture with VMware and Microsoft Hyper-V support. Zenith has indicated that TigerCloud is designed for MSPs and CSPs to build public, private and hybrid cloud services for SMB customers. Zenith Infotech has been on the road promoting the TigerCloud solution, in particular.
MSPmentor will continue to watch Zenith Infotech’s potential settlement negotiations with debt holders.