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 the Corporate Insolvency Resolution Process (CIRP) has been initiated against the company under the Insolvency and Bankruptcy Code, 2016. This typically means the National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by a creditor due to the company's inability to repay outstanding dues. An Interim Resolution Professional (IRP) is likely to be appointed to take over the management of the company and run the resolution process. The existing board may stand suspended, and the company's operations and finances will now be under the IRP's control.
This is a deeply negative development for shareholders — the stock is likely to see heavy selling pressure and possible trading restrictions. Equity shareholders rank last in the payout hierarchy during insolvency, putting their investment at serious risk of dilution or wipeout. Existing management loses control of the company.