EbixCash Loses Two Directors, A Month After U.S. Parent Bankruptcy

EbixCash Ltd., the Indian arm of U.S.-traded Ebix Inc., has seen two directors resign in a month's time after the parent entity filed for bankruptcy.

Directors Uma Shankar and SP Kothari resigned in December, according to data from the Ministry of Corporate Affairs.

The resignations come about a month after Ebix Inc. filed for Chapter 11 bankruptcy proceedings, and despite assuring that 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," it had said in a statement.

Ebix had loans worth about $617 million to be repaid and blamed rising interest rates as reasons for its bankruptcy filing. In its filing, it added that it faced issues due to the resignation of its former auditor RSM US as well as “aggressive inquiries from short sellers" of the company’s stock.

EbixCash is also an IPO-bound company, having filed its draft red herring prospectus in 2022. It received the market regulator's approval for a Rs 6,000-crore offer in April 2023. It has since not gone ahead with its IPO.