Ebix (NASDAQ:EBIX) stock is falling hard on Monday after the on-demand infrastructure software company filed for Chapter 11 bankruptcy protection.
According to a press release from Ebix, this bankruptcy filing is to allow for the successful reorganization of its business. That includes a stalking horse bid for assets tied to its North American Life and Annuity divisions.
The stalking horse bidder in this case is Zinnia. The company says that this sale will provide it with a stronger balance sheet. It says that this is essential to putting Ebix onto the path towards sustainable growth and profitability.
Robin Raina, president and CEO of Ebix, said the following about the asset sale.
“With less than 15% of our worldwide revenues coming from the NA L&A assets being sold to address the credit, and the rest of the businesses of the Company continuing to exhibit strong fundamentals, we believe that the Company’s future is bright – with strong operating fundamentals, a robust business model, world-class products, and a continued ability to generate healthy operating cash flows across the world.”
EBIX Stock Movement on Monday
After announcing the bankruptcy filing and stalking horse bid, nearly 1 million shares of EBIX stock have changed hands. That’s still below its daily average trading volume of about 2.3 million shares.
EBIX stock is down 46.5% as of Monday morning.
There are more stock market stories traders will want to read about below!
We have all of the hottest stock market news worth reading about on Monday! A few examples include why shares of iCoreConnect (NASDAQ:ICCT) and Alaunos Therapeutics (NASDAQ:TCRT) are up today, as well as the biggest pre-market stock movers this morning. All of that news is available at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
