Eraaya Lifespaces Limited, a cutting-edge lifestyle and hospitality company, has announced that its Board of Directors has authorized an exit from its Foreign Currency Convertible Bonds (FCCBs) program. The Company will pursue an amicable resolution, including potential cancellation, rescission of the FCCBs, and full repayment to bona fide bondholders, in compliance with applicable laws.
The decision follows a comprehensive evaluation of the FCCB issuance, which was originally structured to fund the time-sensitive acquisition of Ebix Inc. Although the acquisition was completed through alternate funding, USD 40 million of the USD 120 million raised via FCCBs remains unjustifiably withheld by Elara Capital PLC and certain bondholders.
This withholding has frustrated the principal commercial objective of the issuance and rendered its performance legally impossible under the Indian Companies Act, 2013. The Board concluded that any continuation of the bonds in fragmented form would distort the commercial framework and harm the Company’s governance, financial standing, and regulatory compliance.
The company also revealed that Oyster Bay, one of the FCCB subscribers, is solely managed by Elara Capital—its appointed advisor for the issuance. This undisclosed conflict of interest and fiduciary breach fundamentally undermines the instrument’s credibility. Despite repeated requests, Elara and bondholders have refused to release the withheld funds.
The Company has also faced coordinated destabilization efforts, including regulatory complaints, media leaks, and even personal threats to senior leadership.
The Eraaya Lifespaces Advisory Board—which includes Mr. Karnal Singh (Former ED Chief, Enforcement Directorate), Mr. G.N. Bajpai (Former SEBI Chairman), and Mr. T.M. Bhasin (Former Central Vigilance Commissioner)—has unanimously endorsed the Board’s resolution. The move is seen as a strategic step to uphold governance standards and protect long-term stakeholder interests.
Eraaya has reaffirmed that no legitimate investor will incur any loss and the resolution will follow a fair, transparent, and fully compliant process. The company reserves the right to pursue legal remedies for damages arising from alleged misconduct in the FCCB issuance.
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