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 it has entered the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). This typically means the National Company Law Tribunal (NCLT) has admitted the company into insolvency proceedings, either on its own application or on a creditor's petition due to inability to repay debts. A resolution professional will now oversee the company's operations and attempt to find a resolution plan. During this period, the existing board's powers are generally suspended, and the company's management is taken over by the resolution professional.
This is a strongly negative development for shareholders as CIRP proceedings usually lead to significant erosion of equity value, with existing shareholders often losing their entire investment if a resolution plan involves restructuring or if the company is liquidated. The stock is likely to face high volatility and trading restrictions.