In an unusual plea, Prithvi Catalytic, one of the subsidiaries of crisis-hit Prithvi Info Solutions, sought to alienate itself by changing name

Prithvi Information Solutions Ltd and its founders Madhavi Vuppalapati and her brother Satish Vuppalapati are trying every trick from the book and beyond to save the company and its business from the long arm of the law. In one such 'successful' attempt, Prithvi Info was able to get the name changed for its subsidiary, Prithvi Catalytic Inc to Abilius.

While allowing the company to change its name, the US Bankruptcy Court for Western District of Pennsylvania on 27 March 2014 said, "The Debtor (Prithvi Catalytic) is prohibited from using the name change to conceal its status as a chapter 11 debtor, or in any other way that would cause prejudice to existing or future creditors or parties in interest."

In its plea, Prithvi Catalytic stated "because the 'Prithvi' name is shared by non-debtor entities that have failed or refused to pay employees, it has experienced challenges in the marketplace."

David Amorose, representative of Prithvi Catalytic stated that the 'Prithvi' name has impeded the company’s ability to recruit talent and to enter into contracts with potential customers. The company also assured the Court that it was neither seeking to deceive present or future creditors, nor does it seek to hide the fact that Prithvi Catalytic is subject to a chapter 11 bankruptcy case, or to otherwise suggest that its ownership has changed. "...a name change would give the company the best chance at rehabilitation, which is a benefit to the estate and its creditors," Prithvi Catalytic said.

Prithvi Catalytic, formerly known as Catalytic Software Inc provides custom software development solutions for communications, media and entertainment, and technology industries. In 2010, Prithvi Info bought Catalytic Software and renamed it as Prithvi Catalytic Inc.

As reported by Moneylife, the Bankruptcy Court in the US has directed Madhavi Vuppalapati, founder of Prithvi Information Solutions Ltd to make herself available for an examination under the Federal Rule of Bankruptcy Procedure before 8 May 2014. The case related to a suit filed by Kyko Global Inc seeking to recover damages of over $18 million from Prithvi Info Solutions, which was once a high flying part of India's software story and had been purchased by many top foreign funds.

Last month, the Sheriff from King County auctioned personal assets of Madhavi Vuppalapati to recover $17 million as per directions from a US District Court.

In its Judgment on 6 September 2013, the District Court had said, “Judgment should be entered against Prithvi Information Solutions Ltd, Prithvi Information Solutions International LLC, Prithvi Catalytic Inc, Prithvi Solutions Inc, Madhavi Vuppalapati, DCGS Inc, Inalytix Inc, Avani Investments Inc, Ananya Capital Inc, EPP Inc, Financial Oxygen Inc, Huawei Latin American Solutions Inc and L3C Inc in the amount of $17,568,854 ($17.57 million) plus prejudgment interest accruing at the rate agreed to between the parties at 2.45% per month in the total amount of $796,776, as confessed to by the Defendants.”

However, Prithvi and its associates including Vuppalapati failed to pay $17 million along with penalty charges. This led to the Sheriff auctioning personal assets like 2006 Lexus RX4005D, along with her jewelry and miscellaneous household items belonging to Vuppalapati on 20 March 2014.
 
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