RDA filing for bankruptcy won't affect deal: HCL

Posted By: Staff
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Mumbai, Aug 19: India's leading IT, HCL Technologies on Tuesday, Aug 18 said that it will have no impact on its US $350 million outsourcing contract with US-based Reader's Digest Association (RDA), which is filing a bankruptcy petition in the US.

In a filing to the Bombay Stock Exchange, HCL Technologies in statement said, "The latest developments (bankruptcy filing by RDA) will not affect its relationship and engagement with RDA."

The statement also said, "HCL continues to support RDA and does not see any impact on itself as of now."

Earlier, on Monday, Aug 17, Reader's Digest Association had decided to file for bankruptcy under Chapter 11 in the US as it aimed at reducing its debt by 75 pc and to strengthen its future financial position.

RDA Senior Vice President for IT, Redesign Albert Perruzza said, "HCL is at the very core of our global operations, and we value the relationship today and going forward."

Perruzza also said, "Our underlying business operations are strong, and we are undertaking this initiative with the banks so we can significantly reduce our debt and free up cash for use in building our business."

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