ARSS Infrastructure Projects Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
ARSS Infrastructure Projects Limited has informed the stock exchange that a Corporate Insolvency Resolution Process (CIRP) has commenced against the company under the Insolvency and Bankruptcy Code (IBC). This typically means that an insolvency petition — likely from a creditor — has been admitted by the National Company Law Tribunal (NCLT). Once CIRP begins, the management's powers are suspended and a resolution professional takes control of the company's operations and assets. The process gives the company a limited window to either revive through a resolution plan or face liquidation.
This is a deeply negative development for shareholders. Stock price typically falls sharply on such news, and existing equity holders are at the very back of the queue in any resolution or liquidation — lenders and operational creditors are paid first. Existing shares may end up being cancelled or made worthless depending on the resolution outcome.