Carriox Capital and the Cost of Overlooked Due Diligence

Carriox Capital II LLC, a New York–based financing company once touted as a flexible lender for telecom receivables, has filed for Chapter 11 bankruptcy, disclosing over $552 million in secured debt owed to HPS Investment Partners and almost no remaining assets. The bankruptcy filings reveal a web of affiliated firms — including Bridgevoice, Carriox TowerCap, and BB Servicer — all tied to the same massive debt. Alter Domus is listed as the collateral agent under the HPS loan facility.

The collapse follows a fraud lawsuit accusing Carriox’s owner, Bankim Brahmbhatt, and his companies of fabricating telecom receivables to secure more than half a billion dollars in loans. Court filings claim the group used forged contracts and fake invoices allegedly linked to global carriers such as T-Mobile and Telstra. When lenders attempted to verify these receivables, the scheme unraveled, prompting asset freezes and bankruptcy filings across Brahmbhatt’s network of firms.

The fallout exposes deeper cracks in the telecom finance ecosystem, where opaque factoring arrangements and aggressive institutional lending can conceal significant risks. With BlackRock — the parent company of HPS Investment Partners — indirectly exposed to the losses, the case raises urgent questions about oversight and due diligence in telecom infrastructure financing. The Carriox saga stands as a cautionary tale for contractors and financiers alike: when trust in intermediaries collapses, the damage can ripple far beyond a single balance sheet.

Source: Wireless Estimator