The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of certain assets of Ebix, Inc. on January 18, 2024. The Court approved the asset purchase agreement between the debtor and Zinnia Distributor Solutions LLC, the stalking horse bidder, for the sale of certain assets for a consideration of $400 million minus the deposit escrow amount, which shall be released to seller and/or the applicable seller group member by the escrow agent plus the QOE adjustment amount and assume the assumed liabilities. The debtor?s assets include all of the rights, title, and interests in, to and under the assets and interests of the Seller Group that are primarily used or held for use in connection with the NA L&A Asset Business (other than the specified Excluded Assets), including agreed upon working capital assets of the NA L&A Business and other assets.

The debtors are authorized to take any and all actions reasonably necessary or appropriate to implement the bid procedures in accordance with the following timelines, with the first timeline applicable in the event that the quality of earnings analysis and report contemplated in Section 6.10 of the Stalking Horse APA (the ?QoE Report?) is completed on or before January 26, 2024 (?Timeline A?), and the second timeline applicable in the event that the QoE Report is not completed on or before January 26, 2024 (?Timeline B?). The deadline to submit a bid with respect to the NA L&A Assets under Timeline A, shall be February 9, 2024; or under Timeline B, shall be February 14, 2024. The initial minimum overbid should be in the amount of $5 million more than the initial purchase price.

If the debtor receives any qualified bids then it would hold an auction for its assets on February 13, 2024 for NA L&A Assets under Timeline A or February 19, 2024 for timeline B. At the auction, the subsequent bids would be in increments of amounts determined by the debtor. The stalking horse bidder would be entitled to a break-up fee of 3% of the total purchase price and expense reimbursement of $3 million plus 50% of break-up fee in case of termination of the asset purchase agreement. The sale hearing is scheduled for February 15, 2024 under timeline A or February 23, 2024 for timeline B.