AGS Transact Faces Insolvency Proceedings Amid Financial Struggles
Indian payments services firm AGS Transact Technologies is facing insolvency proceedings after Maxwel Aircon India Private Limited, an operational creditor, alleged non-payment of dues and approached the National Company Law Tribunal. The company, which provides digital and cash-based solutions to banks and corporate clients, stated that it is seeking legal advice and will take appropriate steps to protect its interests.
The financial troubles of AGS Transact have led to multiple credit rating downgrades and the resignation of all four independent directors. The company, along with its ATM cash replenishment unit, defaulted on dues amounting to ₹7.26 billion ($83.1 million), missing interest payments in December and January due to liquidity issues. Crisil and India Ratings downgraded the company’s debt in early February, flagging its inability to meet service-level agreements with customers.
AGS Transact’s stock has been on a continuous decline since February 4, plunging 62.4% to a record low of ₹18.97. The firm reported a loss in the December quarter, with its auditor expressing concerns about its ability to continue as a going concern. Major lenders, including IndusInd Bank, SBI, HDFC Bank, and Bajaj Finance, are among those with exposure to the company’s financial woes.
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