Zoomcar Holdings, a NASDAQ-listed self-drive car-sharing marketplace, has reached a significant milestone in its debt restructuring process. The company aims to reduce its debt obligations of approximately $31 million from its total outstanding debt and payables as of June 30, 2024.
Zoomcar has successfully negotiated with lenders and vendors representing around 75% of the immediate payable debt. These debts have either been converted into a deferred payment schedule, extending up to 24 months, or reduced to a payout of up to half the outstanding amount in the short term.
The company expects to complete this process by the end of November 2024, reducing immediate cash outflow. This move will allow Zoomcar to allocate resources toward strategic initiatives that aim to provide long-term sustainability and value for its stakeholders.
In a statement, Hiroshi Nishijima, CEO of Zoomcar, commented that the debt restructuring is a crucial step in securing the company’s long-term stability. He expressed appreciation for the support of the company’s partners throughout the process and emphasised the importance of fulfilling financial obligations to maintain trust with both partners and customers.
Zoomcar continues to focus on improving its market presence by improving customer experience, expanding its vehicle fleet, and advancing technological developments. With these ongoing efforts and a clear focus on financial stability, the company believes it is well-positioned to support its growth trajectory, Zoomcar claims.