MT Educare discloses defaults on Axis Bank and Prudence ARC loans

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MTEDUCARE · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

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₹1.90

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AI summary

MT Educare has disclosed defaults on term loans, overdraft and corporate guarantees to Axis Bank and Prudence ARC. Total outstanding borrowings stand at 32.33 crores. Current default amount is 24.09 crores in principal and 8.26 crores in interest, with defaults continuing since March 2021. Additional invoked corporate guarantees of 7.3 crores and 16.69 crores exist for related entities. The company has been under Corporate Insolvency Resolution Process (CIRP) since December 2022, with Arihant Nenawati as Resolution Professional. A SVC Bank claim of 49.72 crores was rejected but appeal is pending at NCLAT.

Likely market impact

Negative - ongoing financial distress confirmed. Company is already in insolvency since Dec 2022, so equity holders face high risk of total loss as secured creditors get priority.