Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 49

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 49
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 such shares of Common Stock
and shares of Common Stock underlying Common Stock Equivalents for resale in one or more registration statements, such actions could result
in a breach of these restrictive covenants and we could be liable for damages to the investors in the November Offering, and the Placement
Agent, which could have a material adverse effect on our financial situation and operations.

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In addition to our defaults under current indebtedness described elsewhere here, certain of our debt financing arrangements are currently in default and we have delayed certain other payments to lenders, which may restrict our current and future business and operations.

Since November 2023, we are
in violation of our scheduled monthly instalment payment obligations of $215,337 per month on our lease liability with Ayvens Group (f/k/a
Leaseplan India Private Limited) (“Leaseplan”). Leaseplan notified us on February 7, 2024, that we are in default of
our November 2023 payment. As of the date hereof, we are in default beyond the 30-day extended cure period (as envisaged under the terms
of our debt with Leaseplan) of our November 2023 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. Based on the most recent discussions with Leaseplan, the Company continues to negotiate a 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 hereof, 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 or fail to honor the obligations under any agreement