NOIDA, INDIA 19th December 2023 (GNI): EbixCash Limited today announced that its operations in India will not be affected, by the strategic US -only Chapter 11 process undertaken in the United States by Ebix, Inc.
EbixCash reiterated that the Chapter 11 proceedings apply to Ebix entities in the United States only and Ebix’s approximately 200 affiliates outside the United States are not included in the U.S.-only Chapter 11 filing and will continue to operate normally. EbixCash companies in India, besides all international subsidiaries and their franchisees around the world are not included in the Chapter 11 filing. All worldwide operations of the Company will continue to operate in the ordinary course and without any interruption.
EbixCash has strong stand alone financials and governance, with its cash flows solely available for its own needs. Chapter 11 process mandates insulation between the international companies and the US company in terms of any intercompany dealings.
EbixCash owns all intellectual property, assets, India brands, trademarks and the EbixCash brand. EbixCash future is bright – with strong operating fundamentals, a robust business model, world-class products, and healthy operating cash flows. EbixCash has an independent Board and a strong governance structure, besides a growing business with strong profitability. EbixCash has been continually profitable over the years and is committed to the growth of its businesses and helping take the industry forward.
EbixCash and all its subsidiary companies will continue servicing its existing customers, vendors, partners, and other stakeholders in the ordinary course of business.
EbixCash also stated that the US-only filing of Chapter 11 by Ebix is a business tool used to provide breathing room for companies while they work through their financial and operational issues. It is a step taken by US companies to get credit protection and to keep operating its business in normal course. The US company’s lenders have supported the Company’s efforts in that direction. Even the US company Ebix will continue to operate in normal course. As announced yesterday in a press release by Ebix, the US Company has secured a firm deal with Zinnia, to get a $400 million floor price for a North America software asset. That price is just a floor for other bidders to beat. The sale of this US asset will serve to pay the US debt back substantially under a proper time bound process over the next few months, with the process governed by the US court. The North america Assets being sold, account for just 14.5% of Ebix’s worldwide GAAP revenues for the Year-to-date 9-month period preceding Sep.30th 2023; implying that Ebix is targeting to have a strong balance sheet, while retaining its 85% worldwide revenue base.
About EbixCash: With a “Phygital” strategy that combines over 650,000 physical distribution outlets in India and many Southeast Asian Nations (“ASEAN”) countries as of December 31, 2021, to an Omni-channel online digital platform, the Company’s EbixCash Financial exchange portfolio of software and services encompasses domestic and international money remittance, foreign exchange (Forex), travel, pre-paid gift cards, utility payments, lending and wealth management across 75+ countries including India. EbixCash’s Forex operations are carried out primarily through 82 retail branches, 62 retail kiosks in 16 international airports, including Delhi, Mumbai, Hyderabad, Chennai and Kolkata, 12 seaports, over 250 franchise partners across 69 cities, as well as offered through more than 1200 corporate clients, more than 27 bank clients, and 5-star hotels in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of the leading non-bank travel exchanges based in India and catering to approximately 517,000 agents and approximately 17,900 registered corporate clients as of December 31, 2021. EbixCash’s financial technologies business offers software solutions at the enterprise level for banks, asset and wealth management companies and trust companies within India, Southeast Asia, the Middle East and Africa. EbixCash’s business process outsourcing services provide information technology and call center services to a variety of industries. For more information, visit the Company’s website at www.ebixcash.com
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