Ebix gets approval of bid procedures for remaining assets

By Sarah Lizee

Olympia, Wash., April 16 – Ebix, Inc. received approval of the bid procedures for its remaining assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The order authorizes an auction and bid procedures through which the debtors will solicit and select the highest or otherwise best offer for the following:

• The sale of all remaining assets with respect to the company’s North American business;

• The sale of the debtors’ equity interests in the non-debtor foreign subsidiaries; and

• The right to sponsor a plan of reorganization for the debtors, which can take the form of any combination of a refinancing, a tender offer, and/or an equity financing.

The company has also received approval to designate a stalking horse bidder.

As previously reported, the official committee of unsecured creditors objected to the motion, saying the proposed timeline under the bid procedures would not maximize value for the estates.

“The proposed timeline unnecessarily hinders the debtors’ ability to identify the right buyers, assist in buyer/plan sponsor diligence, consider alternative structures, and negotiate the best transaction structure, reducing the value available for the remaining stakeholders,” the committee said in the objection.

The court approved an extended timeline, with a bid deadline of June 14, an auction set for June 20, and a sale hearing scheduled for June 27.

Ebix is a Johns Creek, Ga.-based international supplier of on-demand software and e-commerce services to the insurance, financial, health care and e-learning industries. The company filed bankruptcy on Dec. 17 under Chapter 11 case number 23-80004.

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