Prime Focus Limited has informed the Exchange about Intimation regarding oral pronouncement by NCLT, Mumbai Bench filed under Section 7 of the Insolvency and Bankruptcy Code, 2016
PFOCUS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
The National Company Law Tribunal (NCLT), Mumbai Bench, has orally pronounced for admission of an insolvency petition filed by Reliance Alpha Services Private Limited under Section 7 of the Insolvency and Bankruptcy Code. The Petitioner claims a financial debt of Rs. 353.79 crore (including interest) under a Loan Agreement executed in 2019. Prime Focus Limited disputes the claim, stating that no amount was ever disbursed under the Loan Agreement and that the Petitioner does not qualify as a "financial creditor." The underlying dispute stems from a 2014 Business Transfer Agreement with the Petitioner's affiliate, which is separately pending before the Bombay High Court. The Company has already filed an urgent appeal before NCLAT seeking a stay of the order. The Company states that business operations continue normally without disruption.
This admission of an insolvency petition by NCLT creates significant uncertainty for shareholders, as the outcome of the appellate proceedings will determine whether the Company faces formal insolvency proceedings. The stock is likely to see volatility until the legal dispute is resolved.