September 19, 2013
Gotham City Research LLC
Based on new information we’ve obtained, Gotham City Research believes:
Ebix improperly financed $100+ million of acquisitions and stock buybacks, tax free, under the guise of a bogus intercompany asset sale, between Singapore & India.
Ebix Inc. & its subsidiaries’ filings are materially incorrect. Newly identified accounting irregularities, in sum, exceed 42% of Ebix’s market capitalization ($169+ million in irregularities).
Swedish pre-tax income is less than %1 of the amounts claimed in the SEC filings, according to Swedish filings.
BDO Sweden was unable to confirm that any of the dealings between Ebix’s Swedish subsidiary, Ebix Singapore and Ebix Australia, ever actually occurred.
Ebix meets the requirements for an “Event of Default”, per Article VII (c) of the Credit Agreement.
Current shareholders are likely to recover little to no value, once the USA & Ebix’s creditors enforce their rightful claims.