SECUREKLOUD TECHNOLOGIES LIMITED has informed the Exchange regarding 'updates on Subsidiary'.
SECURKLOUD · price
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Awaiting price reaction for this filing.
The board of SecureKloud Technologies has given in-principle approval for its US subsidiary, SecureKloud Technologies Inc., USA, to file for bankruptcy under the US Bankruptcy Code. This decision follows a review showing that the subsidiary's liabilities from substantial litigation claims far exceed its assets. The estimated impact on the Indian listed entity is around ₹26 crore, which represents outstanding receivables owed by the US subsidiary. Additionally, the company has a $5 million corporate guarantee to Columbia Bank for the US subsidiary, of which $1.62 million is still outstanding. The company clarified that there is no impact on business continuity, as customer contracts and employees of the US subsidiary were already transferred to Healthcare Triangle, Inc through an Asset Purchase Agreement in October 2024.
Shareholders face a potential write-off of about ₹26 crore in receivables and exposure to $1.62 million under a corporate guarantee, which is a material hit. However, since the operating business and customers had already been moved to another company in 2024, the long-term business may not be severely affected, though the stock could see negative sentiment in the short term.