While it's business as usual for EbixCash, it remains to seen if this will further delay the company's IPO launch.
Ebix Inc, the financial technology firm and parent company of EbixCash in India, has filed for bankruptcy in a North Texas court and the impact on operations in India remains uncertain.
Naveen Kundu, the managing director of EbixCash travel group, told Skift that it is “business as usual” and that the U.S. filing does not affect its operations.
Kundu said that the Chapter 11 proceedings only pertain to Ebix entities in the U.S., and approximately 200 affiliates outside the U.S. are not included in the filing.
Kundu said, “To get out of Chapter 11, the U.S. company has already announced the sale of an asset that pays a substantial part of the debt,” referring to an agreement Ebix announced Monday to sell its North American life and annuity assets to insurance tech company Zinnia for $400 million.
In April, this year, EbixCash was granted regulatory approval for its long-awaited IPO. It is expected to raise between $732 million to $975 million, positioning it as one of the largest IPOs in the financial services sector in India.
Ebix Inc’s wholly-owned subsidiary, Ebix Singapore, holds a 100% stake in the Indian company. Ebix Singapore is one of the guarantors for the credit facility extension deal signed with U.S. banks in November.
Although EbixCash in India does not have any debt, it had previously taken a loan from the parent company for acquiring companies in India. The Indian entity had planned to repay $350 million from the IPO proceeds.
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Photo credit: Ebix Inc has filed for bankruptcy in a North Texas court. ZohoOne-SMB271U-SMB1 / EbixCash World Money outlet at Chennai International Airport