The talks with CarTrade, which are being led by GoMechanic investors, have been on for at least five weeks, said sources familiar with developments. The Morning Context first reported the development on Saturday morning.
The firesale talks come after GoMechanic founder Amit Bhasin in January admitted to financial reporting errors like inflating revenues a move that forced the company to fire around 70% of its staff. The tech-based car maintenance provider also agreed to have its accounts audited by a third party."All equity investors are likely to book a loss on their investments in GoMechanic.
However, one of their venture debt investors will fully recover their principal amount with some negotiations on interest repayable," said the source mentioned above.
The source also told FE that the cash from the merger will primarily be used to pay off all outstanding liabilities on the company's books, especially its debt investor who legally gets the first right to claim dues in a liquidity event.
The source also added that GoMechanic's key assets such as the network of servicing stations, human resource, and the tech itself are the only key considerations in the talks with CarTrade.
この記事は Financial Express Mumbai の March 12, 2023 版に掲載されています。
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この記事は Financial Express Mumbai の March 12, 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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