Robin Raina-led Ebix Inc. filed for bankruptcy in the US on Monday after missing the last deadline to repay over $600 million (about ₹5,000 crore) to lenders. The move cast a cloud over its Indian unit EbixCash, which operates in forex, gift cards and payments services.
The Nasdaq-listed company had been trying to repay loans by raising ₹6,000 crore from an initial public offering (IPO) of EbixCash, a plan that has failed to take off despite a go-ahead from the stock market regulator.
Ebix Inc. and a set of US subsidiaries filed the Chapter 11 petition in a Texas court after failing to repay the $617 million loan that the company had defaulted on in September. The filing cited three factors that pushed Ebix’s US business towards bankruptcy. First, interest rate expenses that jumped from about $32 million in 2020 to $93 million in 2023. Second, a change of auditor in 2021 that hurt investor sentiment and limited its ability to borrow. And third, a 2022 report from Hindenburg Research that caused a more than 40% decline in its market value and led to several shareholder actions. All of this made it challenging for the company to pay back the money it owed to lenders, Ebix said.
Bu hikaye Mint Mumbai dergisinin December 19, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Mint Mumbai dergisinin December 19, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Why Crypto Mania Is Reaching New Heights
Donald Trump's victory has a flavour of revenge—not just for the man but also for crypto bros and their assets of choice.
Trump Picks Musk, Ramaswamy For Government Efficiency Effort
President-elect Donald Trump picked Tesla CEO Elon Musk and biotech company founder Vivek Ramaswamy, a former Republican presidential candidate, to lead an effort to cut spending, eliminate regulations and restructure federal agencies.
Donald Trump Is Recruiting A Team Of China Hawks. So Why Is Beijing Relieved?
With the expected appointments of Sen. Marco Rubio and Rep. Mike Waltz to cabinet positions, President-elect Donald Trump is putting together what some China hawks call a tough-on-China "dream team."
Small loans can spell big trouble for Indian banks
Watch out for signs of stress in India's micro-finance sector. Bad loans, even if small, extract a cost by way of reduced profits as well as higher interest charges on credit across the board
India should redesign its public safety signs to save lives
Mind studies suggest that the use of photographs depicting fear could trigger safe behaviour
Burberry is looking like a fine acquisition target this winter
This brand known for its chequered story can surely perform better
The Washington Consensus has collapsed and it won't be missed
The combination of free-market capitalism and electoral democracy that it promoted has failed to serve everyone equitably
India's statistics ministry has a new sense of purpose
The flurry of activity to get India's statistics right is laudable but we await regulatory design clarity
The rupee could suffer collateral damage if a currency war ensues
The US election is a game-changer for foreign-exchange markets that will test the rupee and RBI
PASSIVE INCOME STRATEGIES FOR MSMEs: SECURE GROWTH, STABILITY IN UNCERTAIN TIMES
I Forging diverse passive income streams takes time, but steady approach builds a strong base
