Intimation for Approval of Resolution Plan by Hon''ble NCLT
Awaiting price reaction for this filing.
The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the Resolution Plan for Prabhat Technologies (India) Limited on October 16, 2025, bringing to an end the Corporate Insolvency Resolution Process (CIRP) that began on October 10, 2019. The plan, submitted by a consortium of three individuals — V.M. Tiwari, Parag Malde (the current CFO), and Prabha Tiwari — was originally approved by 98.15% of the Committee of Creditors in October 2020 but had a turbulent journey including a January 2024 liquidation order that was overturned by NCLAT in May 2025. The approved plan involves total payments of about Rs. 78.24 crore (Rs. 41.36 crore in cash and Rs. 21.62 crore via preferential equity shares), with secured financial creditors (SBI, UBI, BOI) recovering about 32.39% of their claims, unsecured financial creditors getting 0.78%–1.50%, and operational creditors receiving 15%. Statutory dues of roughly Rs. 110 crore will receive only Rs. 35 lakh (0.32%), reflecting the steep haircut involved. Implementation will now begin, with the erstwhile directors essentially returning to run the company.
For shareholders, this is a survival signal — the company escapes liquidation and will continue as a going concern, though existing equity holders are likely to see dilution from the preferential share issuance to creditors. The stock, which has likely been thinly traded or suspended during CIRP, may see renewed activity, but recovery ratios for lenders indicate significant value destruction. The involvement of the current CFO as a resolution applicant is a noteworthy related-party element.