EbixCash Limited on Tuesday (December 19) announced that its operations in India will not be affected by the Chapter 11 process in the United States. The Chapter 11 process mandates insulation between the international companies and the US company in terms of any inter-company dealings, it added.
“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 US only Chapter 11 filing and will continue to operate normally,” it said in a release.
EbixCash said it has strong standalone financials and governance, with its cash flows solely available for its own needs. As per the company, the US-only filing is a business tool used to provide breathing room for companies while they work through their financial and operational issues.
“EbixCash owns all intellectual property, assets, India brands, trademarks and the EbixCash brand. EbixCash’s 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,” it added.
Beginning this week, India-born American Robin Raina-led Ebix Inc filed for bankruptcy after missing the last deadline to repay over $600 million (about ₹5,000 crore) to its lenders. The Nasdaq-listed company had been trying to repay loans by raising ₹6,000 crore from an initial public offering (IPO) — a plan that has failed to take off.
Robin Raina is Ebix’s chief executive officer (CEO). He is the largest shareholder with a 13.9% stake, followed by BlackRock Inc (13.1%), the Vanguard Group (9.8%) and others.
(Edited by : Shoma Bhattacharjee)