AGS Transact defaults on dues worth Rs 386 million

AGS Transact Technologies and its units defaulted in paying obligations worth 385.9 million rupees ($4.44 million), the struggling payments services firm said.

The company and its unit Securevalue India "defaulted in the payment of principal repayment obligations for certain outstanding borrowings" worth 212.3 million rupees, it said in an exchange filing late on Thursday.

The companies and another unit, India Transact Services, also delayed paying certain statutory dues including tax liabilities worth 173.6 million rupees due to delays in collecting payments from customers and invoicing certain unbilled amounts.

AGS Transact provides digital and cash-based solutions to banks and corporate clients, including ATM services.

The company and Securevalue owe a total of 7.19 billion rupees to their creditors, which includes the State Bank of India and Axis Bank, the company said.

The latest development follows a string of financial difficulties for the Indian firm, including a threat of insolvency proceedings from Maxwel Aircon India, one of its creditors, over alleged unpaid dues.

SBI, Axis Bank and Maxwel Aircon did not immediately reply to Reuters' requests for comments.

The company has been grappling with financial strain, leading to credit rating downgrades from agencies Crisil and India Ratings, and the resignation of all four of its independent directors over "personal reasons."