MT Educare Defaults on Principal and Interest Payments, Totaling ₹32.33 Crore
MT Educare Limited has defaulted on principal and interest payments totaling ₹32.33 crore to Prudence ARC and Axis Bank. The company is currently undergoing Corporate Insolvency Resolution Process (CIRP) since December 16, 2022. Corporate guarantees have also been invoked by lenders.
Defaults on loan repayments and ongoing CIRP proceedings have a substantial negative impact on the company's financial health and investor confidence.
The company has disclosed defaults on repayment of principal and interest, indicating significant financial distress.
MT Educare Limited has disclosed defaults on the repayment of principal and interest amounts for its term loans and overdraft facilities, as well as corporate guarantees. The defaults, which have been ongoing since March 2021, pertain to obligations with lenders including Prudence ARC and Axis Bank Limited.
The total current default amount for principal and interest stands at ₹20.19 crore (₹16.44 crore principal, ₹3.75 crore interest) to Prudence ARC and ₹12.16 crore (₹7.65 crore principal, ₹4.51 crore interest) to Axis Bank Limited, bringing the total outstanding borrowings from banks and financial institutions to ₹32.33 crore.
Details of the obligations include a secured term loan of ₹7.16 crore from Axis Bank with a tenure of 2 years and an interest rate of 11.65%, an overdraft facility of ₹4.98 crore from Axis Bank at 11.20% interest, and a secured loan of ₹20.19 crore from Prudence ARC with a 2-year tenure and 13.75% interest rate.
Additionally, the company has outstanding corporate guarantees invoked by lenders. Axis Bank has invoked a guarantee for ₹7.3 crore related to Sri Gayatri Education Society, and Prudence ARC has invoked a guarantee for ₹16.69 crore related to Lakshya Forum for Competitions Private Limited. The company is currently undergoing Corporate Insolvency Resolution Process (CIRP) since December 16, 2022, following an NCLT order. The disclosed financial defaults are in accordance with the claims received from Secured Financial Creditors.
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MT Educare Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by MT Educare Limited. Read the original for the full detail.