Indian-American Robin Raina-led technology firm Ebix Inc. has filed for bankruptcy protection in a North Texas court after defaulting on a $617 million loan, Bloomberg reported on Monday. Several subsidiaries of Ebix, which also runs a financial transactions and remittances company Ebixcash in India, have also filed for bankruptcy, the report said citing a court filing. The law firm Sidney Austin LLP has been assigned bankruptcy counsel, while Jefferies LLC will act as the investment banker to the proceedings.
Last month, the Atlanta-headquartered firm reported its operating income for Q3 2023 of $20.5 million, down by 32.4 per cent year-over-year from $30.4 million in Q3 2022, "primarily due to certain IPO marketing costs, and restructuring-related costs". Ebix's operating income of $80.1 million for the nine-month ended Q3 2023 decreased by 11.5 per cent as compared to $90.6 million in the nine-month ended Q3 2022.
In an annual report filed in December 2021, Ebix had $656.0 million of outstanding debt obligations, excluding amounts related to deferred financing costs, which consisted of a $212.9 million term loan, a $439.4 million balance on its revolving line of credit under the credit facility, a $1.8 million note due to IHC by the EbixHealth JV, and a $2.0 million short-term debt financing of its large corporate insurance requirements.