Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 575

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 575
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 schedule as per the comfort letter, amounting to $2,847,177 (approx.) towards the outstanding debt. The Company is
yet to clear the fourth tranche of payment (as per the proposed payment schedule) which was due as of July 31, 2025 and has sought further
extension of time to repay the remaining three tranches. The Company awaits a confirmation from LeasePlan on the extension sought, but given
the continuing negotiations, and the expected comfort letter, we do not contemplate any immediate legal action against the Company in
this regard. If LeasePlan refuses to issue such comfort letter, or we are unable to execute a settlement agreement with respect
to the restructured debt, or fail to honor the obligations under any proposals accepted or agreement executed for the subject matter it
may, possibly result in inter alia (a) the entire outstanding debt becoming due and payable, and (b) the withdrawal of
a conditional waiver of $1.2 million which was given during a prior restructuring and will become immediately due and payable with interest
of 1.5% per month.

The Company is in breach
of the payment obligation of $408,351 pursuant to the terms of the settlement deed with Orix Leasing and Financial Services Limited (“Orix”).
Orix has issued a default notice during May 2024. Thereafter, Orix had initiated mediation proceedings on August 13, 2024, at Delhi HC
legal service committee for settlement of outstanding dues. Based on the most recent discussions with Orix, the Company has received an
in-principal approval to the settlement terms proposed by the Company on November 7, 2024, from Orix which has agreed to extend the timeline
for repayment of the outstanding dues. The terms of the settlement were also presented to the appointed mediator on November 7, 2024,
and the final settlement agreement was executed and taken on record at the mediation proceedings on November 20, 2024. As of July 31,
2025, Zoomcar has also made payment of eight tranches amounting to $357,703 (approx.) towards partial settlement of the outstanding debts.
If we fail to honor the obligations under the settlement agreement as executed, Orix may pursue debt recovery measures against the Company
and further impose a penal interest at the rate of 18 percent per annum. Such an outcome may have a material adverse impact on our business,
operations or financial condition.  

Further,