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Ebix files for Chapter 11 bankruptcy protection in Northern Texas: Report
Ebix files for Chapter 11 bankruptcy protection in Northern Texas, according to a court filing
Ebix Inc. files for Chapter 11 bankruptcy protection in Northern Texas, according to a court filing, Bloomberg reported.
Several subsidiaries of Ebix have also filed for bankruptcy, according to a Dec 17. court filing. The law firm Sidney Austin LLP has been assigned as bankruptcy counsel, while Jefferies LLC will act as the investment banker to the proceedings, according to the filing.
The filing says that each subsidiary and advisors will “conduct a fulsome marketing and sale process” for the assets of the company. The Texas court will hear the case on Dec. 19.
This comes a month after the company had failed to meet another deadline to pay back a $617 million loan, with creditors having declared the company in default in September following earlier repayment delays.
The creditors had been pushing chief executive officer Robin Raina's firm to sell off assets.
Hindenburg Research had criticised Ebix last year, describing the EbixCash unit, a money-transfer business, as a “house of cards.”
A spokesperson for Ebix had declined to comment, but the company had earlier said that Hindenburg’s allegations were “grossly misleading and erroneous.” Ebix said accountants from Alix Partners reviewed issues related to the unit’s gift card business and that Ebix’s board was satisfied that “no steps were necessary", Bloomberg reported.
The company had also said its books and records were accurate and complied with accounting and US Securities and Exchange Commission reporting requirements.
Ebix won a temporary restraining order against Hindenburg, Google and Twitter last year forbidding the republication of the report in India.
(With Bloomberg inputs)
