JOHNS CREEK, GA — Ebix (OTC:EBIXQ) Inc., a global provider of software and e-commerce services to the insurance, financial, and healthcare industries, has confirmed that its Third Amended Joint Chapter 11 Plan of Reorganization (the "Plan") was approved by the U.S. Bankruptcy Court for the Northern District of Texas on August 2, 2024. The confirmation follows the company's voluntary Chapter 11 bankruptcy filing on December 17, 2023.
Under the Plan, which is detailed in the company's recent SEC filing, all existing equity interests, including common stock, will be canceled upon the Plan's effective date. The Plan also outlines the establishment of a Litigation Trust and the implementation of Reorganization Transactions to reorganize the company's corporate structure. The Plan Sponsor will contribute a New Money Investment of no less than $145 million, with part of these funds allocated to a pool for distribution to holders of allowed general unsecured claims.
As of June 30, 2024, Ebix reported total assets of approximately $533 million and total liabilities of around $1.05 billion. These figures have not been audited and may be subject to future adjustments.
The company's common stock, which had been trading on the OTC Pink Marketplace under the symbol "EBIXQ" following its suspension from the Nasdaq on December 28, 2023, and subsequent delisting on February 26, 2024, will be extinguished without any distribution to shareholders. This move is in line with the Plan's provisions and is a cautionary note for investors, as trading in Ebix's securities during the Chapter 11 process is considered highly speculative.
Ebix's management has issued forward-looking statements regarding the company's restructuring process, cautioning that there are significant risks and uncertainties involved. These include the potential inability to complete the reorganization or to continue operations during the Chapter 11 proceedings.
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