MT Educare Limited has informed the Exchange regarding 'Regulation 30 Disclosure defaults on repayment of Principal Amount andInterest.'.
MTEDUCARE · price
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MT Educare Limited, which is already under Corporate Insolvency Resolution Process (CIRP) since December 2022, has disclosed ongoing defaults on loan repayments to two lenders — Prudence ARC and Axis Bank. The total defaulted amount is about ₹32.33 crore, comprising ₹24.09 crore in principal and ₹8.26 crore in interest, with defaults running continuously since March 2021. Separately, corporate guarantees of about ₹23.99 crore invoked by these lenders against subsidiary/related entities (Sri Gayatri Education Society and Lakshya Forum for Competitions) also remain outstanding. A ₹49.72 crore claim by SVC Bank on a corporate guarantee was rejected by NCLT, though the bank has appealed at NCLAT. The disclosure was made by the appointed Resolution Professional, Arihant Nenawati.
This is a negative development for shareholders — the company is already in insolvency and continues to default on its debt obligations, indicating very limited chances of recovery for equity holders. The stock is likely to remain under stress, and the ongoing CIRP means resolution could result in significant dilution or write-off for existing shareholders.