Zoomcar Announces Debt Restructuring Amidst Continued Growth and Leadership Focus on Financial Stability

Rhea-AI Summary

Zoomcar Holdings, Inc. (NASDAQ: ZCAR), a leading marketplace for self-drive car sharing, has announced a significant milestone in its debt restructuring process. The company aims to reduce approximately $31 million of its total outstanding debt and payables as of June 30, 2024. Zoomcar has successfully negotiated with lenders and vendors who hold about 75% of the immediately payable debt. These debts have been either converted into a deferred payment schedule of up to 24 months or reduced to up to half the outstanding amount in the short term. The company expects to complete the entire restructuring process by the end of November 2024, which will allow for further investment in strategic initiatives. CEO Hiroshi Nishijima emphasized the company's strong business fundamentals and commitment to sustainable growth and financial obligations.

Positive

• Successfully negotiated debt restructuring for 75% of immediately payable debt
• Reduced immediate cash outflow through deferred payment schedules and reduced payouts
• Debt restructuring expected to be completed by November 2024
• Opportunity for further investment in strategic initiatives

Negative

• Approximately $31 million in outstanding debt and payables as of June 30, 2024
• Need for significant debt restructuring indicates financial challenges

News Market Reaction

-0.91%

1 alert

-0.91% News Effect

On the day this news was published, ZCAR declined 0.91%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BENGALURU, India, Oct. 16, 2024 /PRNewswire/ -- Zoomcar Holdings, Inc. ("Zoomcar" or the "Company") (NASDAQ: ZCAR), the NASDAQ-listed leading marketplace for self-drive car sharing, hit a major milestone in the debt restructuring process that is aimed at reducing the company's debt obligations of approximately $31 MM out of the total outstanding debt ("debt" and "payables") as on June 30, 2024.

Zoomcar has successfully negotiated with lenders and vendors who approximately owe 75% of the immediately payable debt. These debts have been either converted into a deferred payment schedule of up to 24 months or reduced payout of up to half the outstanding amount in a short term. The company expects to complete the entire exercise by the end of November 2024 to reduce the immediate cash outflow. This will enable Zoomcar to further invest in strategic initiatives to provide long term sustainability and value for all its stakeholders.

"Zoomcar's business fundamentals are strong, and this debt restructuring is an important step towards positioning the company for long-term success. We are very grateful to all our partners who have stood by us and supported us in our debt restructuring endeavor showcasing their commitment towards our growth. Our focus remains on sustainable growth and fulfilling our financial obligations, which is key to maintaining trust with our partners and customers," said Hiroshi Nishijima, CEO of Zoomcar.

Zoomcar continues to build on its market leadership by enhancing customer experience, expanding its vehicle fleet, and driving technological innovations. With these ongoing initiatives and a clear path toward financial stability, Zoomcar believes they are well-positioned to accelerate its growth trajectory.

About Zoomcar

Founded in 2013 and headquartered in Bengaluru, India, Zoomcar is a leading marketplace for car sharing focused in India. The Zoomcar community connects Hosts with Guests, who choose from a selection of cars for use at affordable prices, promoting sustainable, smart transportation solutions in India.

Forward Looking Statement:

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the Company's ability to execute on its strategic plans and improve profitability and liquidity. Such forward-looking statements are based on assumptions about many important factors, including risks identified in the Company's most recent filing on Form 10-K and other SEC filings, all of which are available on the Company's website. These statements may entail significant risk and uncertainty. Any forward-looking statement in this press release refers solely to what is accurate as of the day it is issued or based on assumptions that Zoomcar believes to be reasonable. The actual results and outcomes may materially differ due to various factors or events beyond our control which we may not be foreseeable at all times. We cannot guarantee or assure any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this press release can or will be achieved. We undertake no obligation to alter or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as required by law.

Press Contact:

• Akarshit Gulati: akarshitg@avianwe.com
• Bhagyashree Rewatkar: bhagyashree.rewatkar@zoomcar.com

Logo: https://mma.prnewswire.com/media/2517562/Zoomcar_Logo.jpg

 

View original content:https://www.prnewswire.com/news-releases/zoomcar-announces-debt-restructuring-amidst-continued-growth-and-leadership-focus-on-financial-stability-302277392.html

SOURCE Zoomcar Holdings, Inc.

FAQ

What is the main goal of Zoomcar's debt restructuring process?

The main goal of Zoomcar's (ZCAR) debt restructuring process is to reduce approximately $31 million of its total outstanding debt and payables as of June 30, 2024, enabling the company to invest in strategic initiatives and achieve long-term sustainability.

How much of Zoomcar's (ZCAR) immediately payable debt has been successfully negotiated?

Zoomcar has successfully negotiated with lenders and vendors who hold approximately 75% of the immediately payable debt.

What are the terms of Zoomcar's (ZCAR) debt restructuring agreement?

The debts have been either converted into a deferred payment schedule of up to 24 months or reduced to up to half the outstanding amount in the short term.

When does Zoomcar (ZCAR) expect to complete its debt restructuring process?

Zoomcar expects to complete the entire debt restructuring process by the end of November 2024.