EbixCash announced in a statement that its international affiliates are unaffected by the U.S. Chapter 11 filing. They stand steadfast, maintaining robust operations and a steadfast dedication to excellence and demand their partners to maintain their trust.
While EbixCash’s parent company Ebix filed for Chapter 11 protection, the announcement clarified that EbixCash 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.
Naveen Kundu, Managing Director, EbixCash Travel Services – India, South East Asia & Middle East, said “This is a credit protection applicable to Ebix companies in the United States only. It does not apply to EbixCash or any other Ebix international companies. The US filing serves as a credit protection for the US company. Also, the US company has already announced the sale of a US asset that pays a substantial part of the debt, to try to expeditiously get out of Chapter 11 in the US.”
He also added, “It is business as usual for us at Ebixcash. The US filing has no impact whatsoever on the EbixCash businesses. We fully stand by our commitments to our customers, suppliers and partners and assure them of our unwavering support.”
Ebix, EbixCash & other companies in India, all international subsidiaries and their franchisees around the world are similarly not included in Chapter 11 filing. All worldwide operations of the Company will continue to operate in the ordinary course and without any interruption. This news has no impact on EbixCash, its employees, partners or vendors.
EbixCash in specifics is a healthy operating Company with fantastic operating fundamentals. It will remain unimpacted in any manner by the US process defined above.
Chapter 11 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 their business in a 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 the normal course. As announced in a press release, the US Company has secured a firm deal with Zinnia, to get a floor price for a US 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 expeditiously under a proper time-bound process over the next few months.
The 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 be a debt-free company soon while retaining its strong 85% plus business worldwide.
Reiterated Naveen Kundu, “EbixCash and all its subsidiary companies will continue servicing its existing customers, vendors, partners, and other stakeholders in the ordinary course of business. EbixCash in specifics is a healthy operating Company with fantastic operating fundamentals. It will remain impacted in any manner by the US process defined above. EbixCash Business Operations will continue normally. Everyone will continue to get paid as usual and all employee benefits and business will continue as usual.”
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.
The fundamentals of the company’s operations are healthy including strong liquidity and ample cash positions. “We believe that the Company’s future is bright, with operating fundamentals continuing to be strong, the business model robust, its products being world-class and pioneering, its distribution reaching the best in the markets, and its healthy fundamentals and operating,” concluded Kundu.
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