NEW DELHI: BlackRock's private credit arm, alongside other lenders including BNP Paribas's HPS Investment Partners, is fighting to recoup over USD 500 million in an alleged fraud involving telecom-services companies owned by an Indian-origin man Bankim Brahmbhatt, according to a report from The Wall Street Journal . The lenders filed a lawsuit in August, alleging Brahmbhatt's companies, including Broadband Telecom and Bridgevoice, used fake accounts receivable as collateral for loans.

The Journal's reporting highlights that the firms now owe the lenders more than USD 500 million. The dispute centres on a kind of debt deal known as asset-based finance, where the borrower puts up collateral in the form of revenue generated by specified businesses, equipment, or customer receivables. This

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