India-Origin CEO Faces $500M Fraud Lawsuit in US Telecom Loan Dispute
BlackRock and other lenders allege India-origin telecom CEO Bankim Brahmbhatt owes over $500 million in loans, sparking one of the largest private credit disputes in the US.
An India-origin CEO of a relatively unknown US telecom-services company has become the center of a high-profile fraud case in the US debt markets.
Bankim Brahmbhatt, owner of Broadband Telecom and Bridgevoice, is facing claims from a unit of BlackRock Inc. and other lenders seeking to recover over $500 million in loans. The lenders, who filed the lawsuit in August, allege that Brahmbhatt’s companies misrepresented assets used as collateral.
Brahmbhatt disputes the allegations, according to his lawyer.
The loans were financed by BNP Paribas on behalf of BlackRock’s HPS Investment Partners, sources said. BNP Paribas declined to comment.
The case revolves around asset-based financing, where borrowers pledge streams of revenue from businesses, equipment, or receivables as collateral. This niche of the debt market has seen rapid growth but also scrutiny following several sudden collapses in the auto industry that triggered fraud and loss claims.