Intimation under Regulation 30 of SEBI LODR 2015, Regarding Initiation of Corporate Insolvency Resolution Process, and Appointment of Interim Resolution Professional of JCT Limited,
Awaiting price reaction for this filing.
The NCLT Chandigarh Bench has admitted an insolvency petition against JCT Ltd filed by Phoenix ARC Private Limited, a financial creditor, and the Corporate Insolvency Resolution Process (CIRP) has been initiated with effect from 10.06.2025. The company defaulted on loans of approximately Rs. 118.25 crores, with the date of default recorded as 29.04.2023. Mr. Hasti Mal Kachhara has been appointed as the Interim Resolution Professional (IRP); the powers of the Board of Directors stand suspended and management of the company now vests with the IRP. A moratorium under Section 14 of the IBC has been declared, prohibiting new suits, asset transfers, and recovery actions against the company. JCT is a Punjab-based textile manufacturer with units at Phagwara and Hoshiarpur, employing around 800 workers and holding about 339 acres of land and machinery worth Rs. 122 crores.
Existing shareholders face major uncertainty as the company's board has been replaced by an insolvency professional and the firm enters a resolution process that may lead to restructuring, a change in ownership, or liquidation. The stock is likely to remain volatile and existing equity could be significantly diluted or wiped out depending on the resolution plan approved by creditors.