Intimation for Approval of resolution Plan by Hon''ble NCLT under CIRP
Awaiting price reaction for this filing.
The NCLT Mumbai Bench-I approved the Resolution Plan for Prabhat Technologies (India) Ltd on October 16, 2025 under the Corporate Insolvency Resolution Process (CIRP), bringing a six-year insolvency saga to a close. The CIRP had been initiated in October 2019 with SBI, UBI and BOI as the principal financial creditors (combined voting share of about 85%). The successful resolution applicant is a consortium of three individuals — the company's erstwhile promoters, Mr. V.M. Tiwari, Mr. Parag Malde and Mrs. Prabha Tiwari. The Committee of Creditors had approved the plan with a 98.15% majority back in October 2020, but the journey to NCLT approval was turbulent: SBI withdrew consent in 2023 alleging misrepresentation by the promoters, leading to a liquidation order in January 2024, which was later set aside by NCLAT in May 2025. Total payouts under the approved plan are roughly Rs. 78.24 crore against admitted claims of about Rs. 317.5 crore — secured banks recover around 32% of their claims, while unsecured creditors and statutory dues recover under 1.5%.
For existing equity shareholders, the resolution plan alters shareholding through preferential allotments to unsecured creditors and promoters. The stock may see relief from the long-pending insolvency overhang, but the steep haircuts across creditor classes indicate most lenders and small claimants are taking major losses, limiting the scope of any meaningful re-rating.