HCL Tech sees no impact from Reader’s Digest bankruptcy

HCL Tech sees no impact from Reader’s Digest bankruptcy
PTI
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First Published: Tue, Aug 18 2009. 02 05 PM IST
Updated: Tue, Aug 18 2009. 02 05 PM IST
Mumbai: Software exporter HCL Technologies on Tuesday said it sees no impact on its seven-year engagement 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 said the latest developments (bankruptcy filing by RDA) “do not affect its relationship and engagement with RDA”, which publishes the world’s largest-circulated magazine, Readers’s Digest.
“HCL continues to support RDA and does not see any impact on itself as of now,” the statement said.
The software exporter in March this year announced a seven-year IT operations and management engagement with RDA.
Reader’s Digest Association has decided to file for bankruptcy in the US. It said in a statement that the filing for bankruptcy protection is aimed at reducing its debt burden by 75 per cent and strengthen its future financial position.
“HCL is at the very core of our global operations, and we value the relationship today and going forward,” RDA senior vice president for IT, Global Operations and Business Redesign Albert Perruzza said.
As part of the engagement, HCL Technologies would provide application development and infrastructure support across the application stack of Oracle, open technologies, main frame, infrastructure support for network, security, storage, end user computing and data centres.
“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. Our creditors are supportive and are working with us to ensure a smooth process with no disruptions to business operations,” Perruzza added.
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First Published: Tue, Aug 18 2009. 02 05 PM IST