Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1186

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 4
Chunk 1186
---
will issue a comfort letter in this regard acknowledging the proposed payment schedule spread across six tranches for repayment of the
restructured debt. As of January 31, 2024, the Company has already cleared the first three tranches in accordance with the proposed payment
schedule as per the comfort letter, amounting to $ 2,851,924 (approx.) towards the outstanding debt. Given the continuing negotiations
and the expected comfort letter, we do not contemplate any immediate legal action against the Company in this regard. If we are unable
to execute a settlement agreement for the restructured debt or fail to honor the obligations under any agreement 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 January 15, 2025,
Zoomcar has also made payment of two tranches amounting to $224,355 (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 p.a. Such an outcome may have a material adverse impact on our business,
operations, or financial condition.

Further we are in violation of the final payment obligation of $538,695
on our loan with Mahindra & Mahindra Financial Services Limited (“Mahindra”). As