AGS Transact Technologies, a well-known payments services company, is facing serious financial difficulties as it has defaulted on loan repayments worth ₹385.9 million ($4.44 million). The company, along with its unit Securevalue India, failed to meet principal repayment obligations for certain outstanding borrowings totaling ₹212.3 million, according to an official exchange filing made late on Thursday.
Delayed Tax Payments and Financial Struggles
In addition to loan defaults, AGS Transact and its subsidiaries have also delayed statutory payments, including tax liabilities of ₹173.6 million. The company cited delays in receiving payments from customers and invoicing certain unbilled amounts as the reasons behind these financial setbacks.
AGS Transact provides digital and cash-based payment solutions to banks and corporate clients, including ATM services. However, the company and its unit Securevalue India collectively owe a total of ₹7.19 billion to creditors, including major financial institutions like State Bank of India (SBI) and Axis Bank.
Mounting Financial Pressure and Legal Challenges
This latest development adds to a growing financial crisis for AGS Transact Technologies, which has been struggling with liquidity issues. One of its creditors, Maxwel Aircon India, has even threatened insolvency proceedings against the company over unpaid dues.
Meanwhile, major stakeholders such as SBI, Axis Bank, and Maxwel Aircon have not yet responded to media requests for comments regarding the company’s financial situation.
Credit Downgrades and Leadership Changes
The company’s ongoing financial troubles have led to credit rating downgrades from rating agencies Crisil and India Ratings. Adding to its challenges, all four independent directors of AGS Transact recently resigned, citing “personal reasons”—a move that further signals instability within the organization.
As AGS Transact Technologies navigates this difficult period, the company will need to take urgent steps to address its financial obligations, rebuild investor confidence, and secure necessary funds to stabilize its operations.
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