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NCLT approves Ebix’s revival plan for Trimax IT Infrastructure

As per the reports, the dedicated bankruptcy court, i.e., NCLT has approved the revival plan for Mumbai-based Trimax IT Infrastructure & Services from the local subsidiary of Nasdaq-listed Ebix Inc. Ebix Software India Private Limited (ESIPL) will pay upfront Rs. 75 crore to acquire the company. The company owed over Rs. 1,918 to its lenders, including about Rs. 1,700 crore too its financial creditors. “It is made clear that the resolution applicant, i.e., Ebix Software shall takeover the corporate debtor (Trimax IT) with all its assets and liabilities as per terms of the approved resolution plan”, according to the Mumbai-bench of NCLT. On 4th May, 2020, while approving the resolution plan, the tribunal also said that “we approve the resolution plan which shall be binding on the corporate debtor and its employees, members, creditors, guarantors, resolution applicant and other stakeholders involved in the resolution plan. Last year in November, lenders approved the revival plan submitted by Ebix Software with 75.22% voting in favour of the company. The liquidation value of the company was about Rs. 103 crore while the fair market value of the company was Rs. 197 crore. The resolution plan value provides for upfront payment which is lesser than the liquidation value. However, after the judgement of the Supreme Court in MSL, the resolution plan can be for a value lesser than the liquidation value and it is well within the commercial wisdom of committee of creditors (CoC) while approving the resolution plan. Mumbai-based Trimax IT Infrastructure I into the business of providing IT and integration services to around 10 state-owned transport corporations in the country and also operates data centres and works as an IT infrastructure solution provider.

 

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