MT Educare Defaults on Loan Repayments of ₹24.19 Cr Principal, ₹8.26 Cr Interest
MT Educare Limited disclosed defaults totaling ₹24.19 crore in principal and ₹8.26 crore in interest on loans from Prudence ARC and Axis Bank. The company is currently under Corporate Insolvency Resolution Process (CIRP) since December 16th, 2022. Corporate guarantees for subsidiaries have also been invoked.
Defaults on loan repayments and ongoing insolvency proceedings have a significant negative impact on the company's financial health, operations, and investor confidence.
The company is disclosing defaults on loan repayments and is already under Corporate Insolvency Resolution Process, indicating severe financial distress.
MT Educare Limited has disclosed defaults on the repayment of principal and interest amounts for term loans, overdrafts, and corporate guarantees. The defaults pertain to loans from Prudence ARC and Axis Bank.
As of July 31st, 2026, the company defaulted on ₹16.44 crore in principal and ₹3.75 crore in interest to Prudence ARC. For Axis Bank, the default amounts are ₹7.65 crore in principal and ₹4.51 crore in interest.
The company's total outstanding borrowings from banks and financial institutions amount to ₹32.33 crore. The company has been under Corporate Insolvency Resolution Process (CIRP) since December 16th, 2022, following an NCLT order. The disclosure also notes invoked corporate guarantees against the company for loans taken by its subsidiaries, amounting to ₹7.3 crore for Axis Bank and ₹16.69 crore for Prudence ARC.
Previously, loans held by Assets Care & Reconstruction Enterprises Limited were reassigned to Prudent ARC Limited. A claim of ₹49.72 crore from Shamrao Vithal Co-op Bank Ltd (SVC) on account of a corporate guarantee was rejected as the guarantee was not invoked by the insolvency commencement date. The bank's appeal against this dismissal is pending.
A plain-language summary of a public exchange filing by MT Educare Limited. Read the original for the full detail.