Corporate Insolvency Resolution Process has been initiated against the Company, copy of the order is attached about appointment of Interim Resolution Professional. Further to inform that ....
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Chennai Bench has admitted an insolvency petition filed by Electronic Corporation of Tamil Nadu Ltd (ELCOT) against Marg Ltd and ordered the start of the Corporate Insolvency Resolution Process (CIRP) on April 4, 2025. The debt of Rs. 2.13 crore (plus 18% interest from November 25, 2022) stems from an unpaid arbitral award related to an incomplete construction contract for an IT building complex at Hosur SEZ awarded in 2010. Ms. Balasubramanian Mekala has been appointed as the Interim Resolution Professional, the company's Board of Directors has been superseded, and a moratorium is now in effect. Marg Ltd has filed an appeal before the NCLAT on April 9, 2025, along with a stay application, but no stay has been confirmed yet.
This is a deeply negative development for shareholders. With CIRP admitted, equity holders face significant risk of dilution or total wipe-out, as operational creditors and lenders are paid first during resolution. The stock is likely to see sharp negative movement; the company's appeal at NCLAT is the only near-term hope for halting the process.