Ebix, managed by Robin Raina, files for bankruptcy: Report

 Ebix, managed by Robin Raina, files for bankruptcy: Report

Ebix, managed by Robin Raina, files for bankruptcy: Report

It is uncertain how these developments would affect business operations in India, where Ebix operates the financial transaction and remittance provider Ebixcash.

According to media sources, the technology company Ebix Inc., managed by Robin Raina, has filed for Chapter 11 bankruptcy in Texas. The firm's deadline for paying debts expired yesterday, December 17, and after being placed on hold many times over the previous few months, it seems doubtful that the company will be able to pay debtors.

Neither the Securities and Exchange Commission nor the Nasdaq, where Ebix is listed, have received any bankruptcy-related filings or disclosures.

It is uncertain how these developments would affect business operations in India, where Ebix operates the financial transaction and remittance provider Ebixcash.

Moneycontrol texted and emailed Raina, the founder and CEO of Ebix, asking for information on the bankruptcy filing. Raina did not reply. An email requesting comment was not answered by the company's investor relations staff either.

The firm had said last month that debtors would have until December 17th to make payments to its creditors, failing which bankruptcy procedures would be initiated in court. The principal amount of Ebix's loans totals $360 million.

The Lender and the Agent have concurred, in accordance with the terms of the Agreement, that, starting on (x) 11:59 p.m. on the day before the Existing Forbearance Effective Date (as specified in the Agreement). The company stated in an SEC disclosure that the lenders will forfeit any rights to pursue remedies with regard to specific defaults and the event of default outlined in the agreement as of December 17, 2023, New York City time, and (y) the date on which any Termination Event specified in the Agreement occurs.

In the third quarter, which concluded in September, Ebix recorded $119 million in sales and $10 million in losses.