MT Educare Limited Defaults on Principal and Interest Payments
MT Educare Limited has defaulted on principal and interest payments totaling ₹32.33 crore to Prudence ARC and Axis Bank. The company is undergoing Corporate Insolvency Resolution Process since December 16, 2022. Corporate guarantees invoked against the company amount to ₹24 crore.
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 reporting defaults on loan repayments and is currently undergoing insolvency resolution, indicating severe financial distress.
MT Educare Limited has disclosed defaults on the repayment of principal and interest amounts for loans from banks and financial institutions, including ECBs. The defaults pertain to term loans, overdrafts, and corporate guarantees. As of August 31, 2026, the company defaulted on payments that have been ongoing since March 2021. The current default amount includes ₹16.44 crore in principal and ₹3.75 crore in interest to Prudence ARC, and ₹7.65 crore in principal and ₹4.51 crore in interest to Axis Bank Limited.
The company's total outstanding borrowings from banks and financial institutions amount to ₹32.33 crore. Specifically, the term loan from Axis Bank Ltd has an outstanding amount of ₹7.16 crore with a tenure of 2 years and an interest rate of 11.65%, secured. The overdraft facility from Axis Bank Ltd is ₹4.98 crore, also secured, with a 2-year tenure and 11.20% interest. Prudence ARC has a secured loan of ₹20.19 crore with a 2-year tenure and a 13.75% interest rate.
MT Educare Limited has been under Corporate Insolvency Resolution Process (CIRP) since December 16, 2022, as per an NCLT order. The claims from secured financial creditors are being processed. Additionally, corporate guarantees invoked against the company include ₹7.3 crore for Axis Bank Ltd (primary borrower: Sri Gayatri Education Society) and ₹16.69 crore for Prudence ARC (primary borrower: Lakshya Forum for Competitions Private Limited). The disclosure notes that a claim of ₹49.72 crore from Shamrao Vithal Co-op Bank Ltd for a corporate guarantee was rejected as the guarantee was not invoked before the insolvency commencement date, though an appeal is pending.
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MT Educare Limited filed this with the NSE as a statutory disclosure, categorised under fraud/defaults disclosure. 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.