eClerx's major client files for bankruptcy

A US-based client of eClerx, with an outstanding receivables of $1 million, has filed for bankruptcy under Chapter 11 in a New York court, the company informed the Bombay Stock Exchange (BSE) today. However, the name of the client was not disclosed.

eClerx had earned around 13 per cent of annual revenues from this client, which is one of its top five customers in revenue terms.

In a recent development, it has been announced that certain operations of its client – including some that were supported by the company – were to be acquired by a competition, which is also a customer of eClerx, it said.

eClerx is working with both clients to determine the impact on receivables and future business from the combined entity.