NEW DELHI: US-based Ebix Inc and some other US subsidiaries of the company have filed for protection under Chapter 11 in the US court. The company in a statement has, however, said its nearly 200 affiliates outside the US are not included in the US-only Chapter 11 filing and will continue to operate normally.
“All worldwide operations of the company will continue to operate in the ordinary course and without any interruption,” said the company in a media statement.
The company promoted by Robin Raina had over $600 million in debt and recently defaulted on repayment of a part of the loan.
Ebix Inc has a major presence in India through its subsidiary Ebix Cash, which provides domestic and international money remittance, foreign exchange (Forex), travel, pre-paid gift cards, utility payments, lending and wealth management services.
In the statement, the company said it has secured the debtor-in-possession financing from its existing lenders to consummate these proceedings and continue business in the ordinary course.
It added that it has reached an agreement to sell its North American Life and Annuity assets to Zinnia, an Eldridge business and leading life insurance and annuity technology and service company, as part of its efforts to strengthen its balance sheet.
It has retained Jefferies as investment banker to assist in conducting a value-maximising marketing and sale process of the NA L&A Assets.