Mcnally Bharat Engineering Company Limited has informed the Exchange regarding 'Disclosure by listed entities for defaults on payment of interest / repayment of principal amount on loans from banks / financial institutions and unlisted debt securities'.
Awaiting price reaction for this filing.
Mcnally Bharat Engineering has disclosed to the exchanges that its entire outstanding debt is in default as of June 30, 2025. All Rs. 1,995.50 crore in loans and revolving facilities from banks and financial institutions are in default, along with the full Rs. 54.51 crore in unlisted debt securities (NCDs/NCRPS). Total financial indebtedness stands at Rs. 2,014.01 crore, with an additional Rs. 3,089.26 crore in accrued interest recognized till March 2025. The disclosure is made under SEBI's circular on reporting defaults beyond 30 days and is subject to the Resolution Plan approved by the NCLT Kolkata bench on December 3, 2024.
This is a highly negative signal — essentially 100% of the company's bank borrowings and unlisted debt securities are in default. For shareholders, this reflects deep financial distress and the company is currently operating under an insolvency resolution framework, which typically results in significant dilution or loss of value for existing equity holders.