Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 878

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 878
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 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.

Further, we are in violation
of the final payment obligation of $371,805 (approx.) on our loan with Mahindra & Mahindra Financial Services Limited (“Mahindra”).
As of the date hereof, Mahindra has not formally extended or provided a waiver of such overdue payment. Mahindra may initiate legal action
for resolution of the dispute. Such outcomes may have a material adverse impact on our business, operations or financial condition.

Additionally, we are in various
stages of discussion on deferment with our other lenders with regards to the scheduled loan payments from November 2023 onwards and extending
up to July 2025. However, we have not received any formal notice of default from these other lenders, but such lenders have not formally
extended or provided waivers of such overdue payments. While the Company is actively engaging in discussions with its lenders and vendors
to restructure the existing indebtedness by means of reductions and deferment of payment timelines, no assurance can be made that the
Company will be successful in restructuring these outstanding liabilities.

As a result of the foregoing,
the Company is at material risk that the above parties including certain vendors could initiate insolvency proceedings under Indian Insolvency
and Bankruptcy Code 2016 (IBC). As per the