All worldwide operations of the Company will continue to operate in the ordinary course and without any interruption
FinTech BizNews Service
Mumbai, December 19, 2023: EbixCash Limited today announced that its operations
in India will not be affected, by the strategic US -only Chapter 11 process
undertaken in the United States by Ebix, Inc.
EbixCash reiterated that the Chapter 11 proceedings apply to Ebix entities in the
United States only and Ebix’s approximately 200 affiliates outside the United States
are not included in the U.S.-only Chapter 11 filing and will continue to operate
normally. EbixCash companies in India, besides all international subsidiaries and
their franchisees around the world are not included in the Chapter 11 filing. All
worldwide operations of the Company will continue to operate in the ordinary course
and without any interruption.
EbixCash has strong stand alone financials and governance, with its cash flows
solely available for its own needs. Chapter 11 process mandates insulation between
the international companies and the US company in terms of any intercompany
dealings.
EbixCash owns all intellectual property, assets, India brands, trademarks and the
EbixCash brand. EbixCash future is bright - with strong operating fundamentals, a
robust business model, world-class products, and healthy operating cash flows.
EbixCash has an independent Board and a strong governance structure, besides a
growing business with strong profitability. EbixCash has been continually profitable
over the years and is committed to the growth of its businesses and helping take the
industry forward.
EbixCash and all its subsidiary companies will continue servicing its existing
customers, vendors, partners, and other stakeholders in the ordinary course of
business.
EbixCash also stated that the US-only filing of Chapter 11 by Ebix is a business tool
used to provide breathing room for companies while they work through their financial
and operational issues. It is a step taken by US companies to get credit protection
and to keep operating its business in normal course. The US company’s lenders
have supported the Company’s efforts in that direction. Even the US company Ebix
will continue to operate in normal course. As announced yesterday in a press
release by Ebix, the US Company has secured a firm deal with Zinnia, to get a $400
million floor price for a North America software asset. That price is just a floor for
other bidders to beat. The sale of this US asset will serve to pay the US debt back
substantially under a proper time bound process over the next few months, with the
process governed by the US court. The North america Assets being sold, account for
just 14.5% of Ebix’s worldwide GAAP revenues for the Year-to-date 9-month period
preceding Sep.30th 2023; implying that Ebix is targeting to have a strong balance
sheet, while retaining its 85% worldwide revenue base.
