Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 59

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 59
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 papers, two
“Events of Default” (as defined in the Note) had occurred thereby entitling ACM to full and accelerated payment of the Note. 
The first was a Form 8-K, filed by Zoomcar on May 9, 2024, which allegedly disclosed that on May 6, 2024, Zoomcar had entered into an
equity line arrangement and “Variable Rate Transaction” (as defined in the Note) with White Lion Capital LLC (“White
Lion”).  The second was a Form 8-K, filed by Zoomcar on June 21, 2024, which allegedly disclosed that on June 18, 2024, Zoomcar
had incurred a form of debt that was not “Excluded Debt” (as defined in the Note) arising from its placement agent agreement
with Aegis Capital Corp. without ACM’s prior consent.  The Note generally provides that, upon the occurrence of an Event of
Default, all accrued but unpaid interest plus liquidated damages and other amounts thereof shall become immediately due and payable to
the Note holder. 

35

Zoomcar believes it has
meritorious defenses to the Motion and intends to zealously defend itself.  As such, on January 14, 2025, Zoomcar filed opposition
to the Motion.  In relevant part, Zoomcar challenged the fact allegations concerning: (i) the first Form 8-K by tendering to the
Court evidence confirming that the subject transaction with White Lion in fact had been terminated and the underlying filing of a Form
S-1 registration statement contemplated in that transaction was never effectuated; and (ii) the second Form 8-K by tendering to the Court
evidence confirming that the subject transaction involved Excluded Debt.  The effect of the foregoing is the transactions were excluded
from the definitions of Events of Default and extinguished ACM’s alleged entitlement to accelerated payment under the Note. 
Additional defenses were also presented by Zoomcar to the Motion.  On March 28, 2025, New York County Supreme Court Justice granted
a summary judgment in favor of ACM in the amount of $5,656,086.72, as well as default interest in the amount of $346,481.00, post-judgment
interest at the statutory rate, attorneys’ fees, and costs.  The issue of attorneys’ fees was referred to a special
referee to report and recommend on submission from the parties.