India's AGS Transact Technologies and its subsidiaries have defaulted on obligations totaling 385.9 million rupees ($4.44 million), as confirmed by a recent announcement from the troubled payments services provider. The main company and its subsidiary Securevalue India failed to fulfill principal repayment commitments amounting to 212.3 million rupees, as detailed in a late Thursday filing with stock exchanges.
The entities, including another subsidiary named India Transact Services, encountered delays in settling tax liabilities worth 173.6 million rupees due to challenges in receiving payments from clients and invoicing outstanding amounts. AGS Transact is known for offering digital and cash-based solutions to banks and corporate customers, such as ATM services.
In total, AGS Transact and Securevalue reportedly owe 7.19 billion rupees to various creditors, including the State Bank of India and Axis Bank. This development comes amidst a series of financial troubles for the Indian company, including a dispute with Maxwel Aircon India, a creditor who claims unpaid debts.
Neither SBI, Axis Bank nor Maxwel Aircon had responded to requests for comments from Reuters at the time of reporting. AGS Transact has faced financial strain leading to credit rating downgrades from agencies Crisil and India Ratings, alongside the resignation of all four independent directors for "personal reasons."
(1 USD = 87.1100 INR)