© Gotham City Research LLC

Ebix: New Problems Emerge in Singapore, Sweden, and India

September 19, 2013

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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