Robin Raina-led technology firm Ebix Inc has filed for bankruptcy under Chapter 11 in Texas, according to media reports. The company's deadline to pay debtors ended yesterday (December 17) and the company is unlikely to be able to pay back the debtors after multiple forbearances over the last few months.
There are no filings or disclosures on the bankruptcy on the Securities and Exchanges Commission or Nasdaq, where Ebix is listed.
Ebix runs a financial transactions and remittances company Ebixcash in India and it is not clear how the events will impact the operations in the country.
Ebix founder and CEO Raina did not respond to Moneycontrol's text messages or emails requesting details of the bankruptcy filing. The company's investor relations team also did not respond to emails seeking comments.
Last month, the company announced that its lenders had given time till December 17 to pay the debtors failing which they will move to court with the bankruptcy proceedings. Ebix has accumulated a debt of $360 million in principal amount.
"Pursuant to the Agreement, the Agent and the Lenders have agreed that, during the period from the Existing Forbearance Effective Date (as defined in the Agreement) to the earlier of (x) 11:59 p.m. New York City time, on December 17, 2023, and (y) the date on which any termination event, as set forth in the Agreement, has occurred, the Lenders will forbear from exercising any of their respective rights and remedies with respect to certain specified defaults and event of defaults as set forth in the Agreement," the company said in an SEC disclosure.
Ebix had reported $119 million in revenue while its losses stood at $10 million during the third quarter ending September.
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