LISTED call-center operator, Paxys Inc., expressed optimism of its revenue prospects despite the filing for bankruptcy of one of its major US-based clients, PRC Llc.

“The plan of reorganization of PRC was confirmed by the US Bankruptcy Court on June 19. An amended plan, incorporating settlements reached with certain parties and the court’s rulings of even date, is expected to be filed shortly,” Paxys said in a disclosure submitted yesterday to the stock exchange.

Paxys said based on the proposed rehab plan, PRC will be able to pay all expected disbursements upon emergence, which is expected on June 30.

Last January, PRC filed for Chapter 11 protection in the US to achieve financial stability so as to emerge as a stronger and more competitive company.

Paxys was unfazed by the PRC move saying the filing will not have a major impact on its operations. At the end of the first quarter, the company’s first-quarter net profit reached P63.5 million, while service income grew to P842 million.

Protection under Chapter 11 will allow PRC, a leading provider of customer management solutions, to reorganize its capital structure while continuing to operate its business in the normal course.

“PRC has advised its subsidiary, Advanced Contact Solutions (ACS), that, in view of ACS’ importance in ensuring that there is no disruption to the day-to-day activities of PRC’s customers, it will ask the US Bankruptcy Court to allow PRC to perform and become current on its financial obligations under its existing contract with ACS,” said Paxys. ACS is a wholly- owned unit of Paxys.  

PRC markets its services to brand-focused and Fortune 500 US corporations and delivers these services through a global network of call centers. ACS, for its part, believes that PRC’s Chapter 11 filing does not have a materially adverse effect upon its financial condition.

“While any further weakening of PRC’s financial condition could materially adversely affect ACS and Paxys, the relief afforded by the Chapter 11 proceedings provides PRC an opportunity to alleviate its financial burdens and rationalize its operations,” it said.

ACS started its commercial operations on January 1, 2004. It is engaged in call-center business that offers an integrated mix of call- center solutions including inbound (customer-initiated) and outbound teleservicing, as well as e-mail and web-based tools. 

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Listed BPO company unfazed by client woes

LISTED call-center operator, Paxys Inc., expressed optimism of its revenue prospects despite the filing for bankruptcy of one of its major US-based clients, PRC Llc.

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