Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 469

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 4
Chunk 469
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3 payment and continue to be default of all EMIs thereafter. As a result of such defaults,
as of the date hereof, Leaseplan (i) has initiated the process of repossession of all vehicles, and (ii) has invoked the bank guarantee
of $120,482 which was a security created by Zoomcar in favor of Leaseplan. Such outcomes may have a material adverse impact on our business,
operations or financial condition.  The Company continues to negotiate a deferred payment plan to the restructured debt proposal
shared by the Company wherein the debt after certain waivers and discounts, will stand restructured to $4,755,942 and the Company is hopeful
that Leaseplan will issue a comfort letter in this regard acknowledging the proposed payment schedule spread across six tranches repayment
of the restructured debt. As of the date of this Form 10-Q, the Company has already cleared the first three tranches in accordance with
the proposed payment 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