EbixCash Ltd has said its operations in India will not be affected by the strategic US-only Chapter 11 process undertaken in the US by Ebix Inc.
EbixCash reiterated that the Chapter 11 proceedings apply to Ebix entities in the US only, and Ebix’s 200-odd affiliates outside the US are not included in the US-only Chapter 11 filing and will continue to operate normally, according to a statement.
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 said in the statement.
It said EbixCash has strong standalone 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.
Recently, Nasdaq-listed Ebix Inc also filed for Chapter 11 bankruptcy protection in Northern Texas.
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,” it said.
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 American 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.
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