A London based investor and Nasdaq-listed Ebix are competing to buy Educomp Solution, which has been laid in debt lately. The binding offers for the company have been submitted on Saturday and will be evaluated by a committee of creditors on this Thursday.
Ebix's has valued Educomp below Rs 300 crore, which is 90% less than the Rs 3,000 crore owed by the company to its lenders. And their offer includes upfront payments. On the other hand, the London-based investor has offered a deferred payment plan to the creditors.
"Ebix would be interested in the access that the Educomp platform can provide to a network of schools and its sales force which can be used to sell its own products such as its payments platform," said Danish Faruqui, Partner at L.E.K Consulting's global education practice.
Interestingly, Educomp already has a joint venture with Ebix to bid for government tenders in the education sector.
Speaking of Educomp Solutions, last year in May, the company had filed for bankruptcy. The list of creditors includes State Bank of India, Axis Bank, ICICI Bank, International Finance Corporation and French development finance institution Proparco. These creditors are being advised by PricewaterhouseCoopers on the bidding process. As per reports, the two subsidiaries of Educomp, Edusmart and Educomp Learning Hour, are also undergoing insolvency proceedings at the NCLT. And two others, Edu Infra and Vidya Mandir Classes, are also slated to be admitted for insolvency proceedings. Additionally, a Singapore-based arm of the company is already facing liquidation.
Further discussions and negotiations, after the review of both the offers, will decide the fate of the company and its stakeholders.
Educomp Solutions, promoted by Shantanu Prakash, specializes in K12 (kindergarten to Class 12) content library with 3D multimedia educational content.