Robin Raina-led Ebix Inc files for bankruptcy after defaulting on $617 million loan: Report

Robin Raina-led Ebix Inc files for bankruptcy after defaulting on $617 million loan: Report

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 Inc. has filed for bankruptcy
Business Today Desk
  • Dec 18, 2023,
  • Updated Dec 18, 2023, 4:21 PM IST

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.

 

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