I’m ‘personally liable’ for $750mn SoftBank loan: Better.com CEO Vishal Garg

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San Francisco, May 14 | Better.com CEO Vishal Garg, who hogged the limelight for firing nearly 900 employees over a Zoom call in 2021, has acknowledged to employees that he “personally guaranteed” $750 million of the $1.5 billion cash infusion into the company by SoftBank.

It was Garg and not the company, who took responsibility for compensating the Japanese investment giant SoftBank for any losses, reports TechCrunch.

On November 30, 2021, Better.com, which is a digital mortgage lender, announced that “Aurora Acquisition Corp and SoftBank decided to amend the terms of their financing agreement to provide Better with half of the $1.5 billion they committed immediately instead of waiting until the deal closes”.

A filing by Aurora said the “Better Founder and CEO in his personal capacity has agreed to enter into a side letter with SoftBank, according to which he may be liable for realised losses or receive payments in certain circumstances from SoftBank in connection with the post-closing convertible notes”.

In response, Garg in an email to employees acknowledged personal responsibility for the $750 million cash infusion, the report said late on Friday.

“I am fully committed with everything I own and will ever own. Five years from now, when that SoftBank $750 million loan comes due around my 50th birthday, it means I have nothing. Well, at least we will have given it a real shot… this is true. I did personally guarantee three quarters of a billion dollars and I’m personally liable for it,” he told the employees.

The report, citing sources, also said Better.com in recent weeks offered “its workers in India the option to leave under a voluntary separation agreement”. In total, nearly 920 workers had their resignations accepted.

After laying off nearly 4,000 employees in the US and India, digital mortgage lender Better.com offered employees paid severance or voluntary separation and health insurance coverage.

According to the company, the uncertain mortgage market conditions created an exceedingly challenging operating environment for many companies in the industry.

Source: IANS

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Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

Share Market Closing Bell: Nifty ends above 15,800, Sensex gains 180 pts

The benchmark Indices Nifty started on the positive side after continuous sell off in last week and has managed to settle at 15842.30 with 60 point gain or 0.38 percent. However Nifty has failed to regain 16000 levels prior to LIC listing.

While Bank nifty has managed to settle at 33597.60 levels after gaining 1.44 percent. On the sectoral front, Nifty PSU Bank, Nifty Realty and Auto have contributed 2-3 percent gain on closing basis. On the flip side Nifty IT and FMCG ended with losses of 0.75 percent and 0.35 respectively. In Nifty, EICHERMOT, APOLLOHOSP and UPL were the top gainers while ULTRACEMCO, SHREECEM and ASIANPAINT were the prime laggards.

Technically, after forming the bearish candle on the weekly chart, the index has formed a Doji candlestick on the daily chart which shows indecisiveness among the trades. Moreover, the index has also faced a resistance from falling trend lines and showed profit booking from higher levels. However, Fibonacci retrenchment also has support around 15650 levels.

Traders may find buying opportunities for short term as if 15650 levels is protected. In the hourly chart, with support of the middle Bollinger band short term upside movement is expected. Stock specific action would drive the market in coming days too.

On the derivatives front, the highest call OI is at 16000 strike price followed by 16200 strike prices while on the put side, highest OI is at 15500 strike price. INDIA VIX closed at 24.53 with gain of 4.43 percent intraday indicating volatility is going to remain till weekly expiry . On the other hand, Bank nifty has support at 32600 levels while resistance is placed at 34500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

 

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