Someone please explain this to me...

[Tahoe Ray]

How the hell does Ebix go bankrupt? This has to be mismanagement on the largest scale, right?

[EXTERNAL LINK] - Ebix announces bankruptcy, plan to sell life and annuity assets to Zinnia

 

[Al3x Lee]

How the hell does Ebix go bankrupt? This has to be mismanagement on the largest scale, right?

[EXTERNAL LINK] - Ebix announces bankruptcy, plan to sell life and annuity assets to Zinnia

I wouldn't be surprised to see more of this in the near future if the economy stays on it's current trajectory. 2024 will be an interesting year.

"Ebix blamed its bankruptcy on rising interest rates and the looming maturity of roughly $617 million of loans. Ebix said it faced additional challenges following the resignation of its former auditor RSM US LLP as well as “aggressive inquiries from short sellers of the Company's stock.”

[EXTERNAL LINK] - Short Seller Target Ebix Files for Chapter 11 Bankruptcy

 

[Tahoe Ray]

aggressive inquiries from short sellers of the Company's stock.”

Which is bullshit b/c if your company is well managed, shorts don't matter.

This is just a perfect example of a great concept not being executed correctly. SaaS is the absolute best business to be in because of recurring revenue. This should be really easy to manage...it's mind-boggling.

 

[scagnt83]

Ebix products have absolutely horrible UX interfaces. (user experiences)

They spent a lot of time trying to do more and more and more, especially within Winflex.
But they failed to update the user interface with modern times.

Compared to most SaaS UX, Ebix is stuck with a 15 year old UX.

SMARTOFFICE IS STUCK IN THE 1990s from a UX standpoint.
Horrible does not even begin to describe it.

And its a shame, SO could dominate the insurance CMS market if they had even a half decent user interface.

Im guessing the money went into the execs bank accounts and not into UX updates.

Most people use Ebix products because they have to, not because they want to.

 

[Life Hawk]

Just another day of building back better.

Man it makes me feel great to say that!

B U I L D B A C K B E T T E R ! ... more to come.

 

[Al3x Lee]

B U I L D B A C K B E T T E R !

Gotta build those red light districts up for Hunter... I mean what?

 

[walthamny]

So the stock was at $80 a share few years ago. Instead of issuing more shares and get cash into the company, they borrowed money at a variable rate presumably to invest in the product line. And when the interest rates went up, they cant afford interest payments. It does not all add up unless the borrowed money is totally mismanaged.

 

[Allen Trent]

So the stock was at $80 a share few years ago. Instead of issuing more shares and get cash into the company, they borrowed money at a variable rate presumably to invest in the product line. And when the interest rates went up, they cant afford interest payments. It does not all add up unless the borrowed money is totally mismanaged.

Borrowed money tends to get spent much more liberally than non borrowed monies. Insert the name of most insurtech startups or all the green energy startups.

 

[Marcie]

What is in store for those of us that use Smart Office? I cannot locate any information in the bankruptcy case regarding this. Also, neither I or my employees can log into Smart Office today. I'm assuming all accounts,etc are frozen due to bankruptcy filing.

 

[davephx]

Smartoffice still works fine for me as of today. I note there was an upgrade so site not available about 12/15 but only for a day. I don't really use it that much been using it for many years just to track email and key info on clients. But if I can export data I may stop using it. I don't really use it for anything else.