One day after as many as 1,200 employees at Teltrust's two Utah call centers were abruptly laid off, a Boston-based bank has filed suit against the national customer relations firm for nearly $18 million.
In Salt Lake's 3rd District Court, Fleet National Bank on Thursday asked a judge to issue a temporary restraining order prohibiting the outsourcing call center from turning over any company proceeds to anyone other than Fleet.
The bank has also asked for permission to garnish all Teltrust bank accounts, seize the company's assets and collect outstanding accounts receivables, valued at more than $7 million on Jan. 5.
The company was supposed to pay Fleet a principal loan balance of $17.125 million on Jan. 9, according to the lawsuit. However, sometime that same night or the morning of Jan. 10, Teltrust terminated all of its employees and ceased all business operations.
Teltrust, which has been in business for 15 years and has its headquarters in New York City, entered into the loan in 1997, the suit states. Fleet alleges it informed Teltrust its loan was in default "several times" in 1999, 2000 and 2001.
Teltrust allegedly failed to "make interest and principal payments due at the end of December 2000" and failed to "satisfy numerous financial, reporting and performance covenants."
Employees at Teltrust's two Utah locations — one in Clearfield at 375 S. State and the other in Salt Lake City at 6322 S. 3000 East — were met at the door Wednesday morning with their personal belongings and information on how to collect unemployment.
Meanwhile, officials and former employees alike are baffled by the unexpected closure and the inaccessibility of Teltrust officials. Calls to both Utah locations have gone unanswered since Wednesday.
According to the lawsuit, the company is in "severe financial distress and cannot pay their debts as they become due." Fleet has requested immediate action on the court's part, claiming that if Teltrust officials are given advance notice of their intentions they will "transfer or otherwise dissipate" their remaining funds.
For example, a Jan. 5 check of Teltrust's Utah accounts showed a balance of $1.1 million, but as of Jan. 10 there was less than $300,000 in available funds, the suit states.
Attorneys for Fleet National Bank were unavailable for comment by press time Friday.
E-MAIL: awelling@desnews.com