Default in repayment of principal and interest disclosed for term loan, overdraft and corporate guarantee
MT Educare Ltd has disclosed a default in repayment of principal and interest on its term loan, overdraft and corporate guarantee, with lenders Prudence ARC and Axis Bank.
By ScoutQuest · · 3 min read
- Default amount - Prudence ARC
- principal Rs. 16.44 crore, interest Rs. 3.75 crore
- Default amount - Axis Bank
- principal Rs. 7.65 crore, interest Rs. 4.51 crore
- Total outstanding borrowings
- Rs. 32.33 Crores
What the company disclosed
MT Educare Ltd has informed the exchanges that it has defaulted in repayment of principal and interest on its borrowings. The obligations covered are a term loan, an overdraft and a corporate guarantee. The lenders named are Prudence ARC and Axis Bank. The date of default is given as 30/09/2026 (since March, 2021 onwards).
The company states that these financial defaults are in accordance with the claim received from secured financial creditors.
Default amounts, lender-wise
- Prudence ARC: principal 16.44 and interest 3.75
- Axis Bank Limited: principal 7.65 and interest 4.51
(All amounts in INR in Crores, as printed in the update.)
Borrowings outstanding
- Axis Bank Ltd – Term Loan: 7.16, tenure 2 years, rate of interest 11.65%, secured
- Axis Bank Ltd – OD: 4.98, tenure 2 years, rate of interest 11.20%, secured
- Prudence ARC: 20.19, tenure 2 years, rate of interest 13.75%, secured
- Total amount of outstanding borrowings from banks/financial institutions: 32.33 Crores
Corporate guarantees invoked against the company
- Axis Bank Ltd, against primary borrower Sri Gayatri Education Society: 7.3, secured
- Prudence ARC, against primary borrower Lakshya Forum for Competitions Private Limited: 16.69, secured
Insolvency status
The company states it is under Corporate Insolvency Resolution Process since 16.12.2022 as per the order of the Hon ble NCLT, Mumbai. Claims are being confirmed as per public announcement. A Committee of Creditors was constituted on 21-08-2023, and Mr. Arihant Nenawati was appointed as the new Resolution Professional on 22nd January, 2024, in an application shared by Prudent ARC. The disclosure is signed by the Resolution Professional.
The update also states that in view of the ongoing CIRP proceedings, no changes have occurred in the information previously submitted in the disclosure.
Other points noted in the update
- The loans earlier held by Assets Care & Reconstruction Enterprises Limited were re-assigned to Prudent ARC Limited vide a deed of Assignment dated 11th August, 2023.
- Shamrao Vithal Co-op Bank Ltd submitted a claim of Rs. 49.72 crore on account of a corporate guarantee issued for its subsidiary Labh Ventures India Pvt Ltd. The update states the bank had not invoked the corporate guarantee till the Insolvency Commencement Date of 16-12-2022, so the claim was rejected; the bank s application before the Hon ble NCLT, Mumbai was dismissed by order dated 27th March, 2025, and its appeal before the Hon ble NCLAT is pending.
How a retail investor can read this
- This is a formal disclosure of a continuing payment default, made at a time when the company is already under a court-supervised insolvency resolution process.
- The numbers show the size of the unpaid principal and interest with each lender, and the total outstanding borrowing of Rs. 32.33 Crores from banks and financial institutions.
- The corporate guarantees mentioned are separate from the company s own borrowings and relate to loans of other entities.
- The resolution process and the pending appeal over the SVC Bank claim are the framework within which these amounts are being dealt with.
Also from MT Educare
Continuing default on term loan, overdraft and invoked corporate guarantees; company under CIRP
30 Sep 2026
More numbers
- Prudence ARC - default principal amount16.44 (INR in Crores)
- Prudence ARC - default interest amount3.75 (INR in Crores)
- Axis Bank - default principal amount7.65 (INR in Crores)
- Axis Bank - default interest amount4.51 (INR in Crores)
- Prudence ARC - amount outstanding20.19 (INR in Crores)
- Total outstanding borrowings from banks/financial institutions32.33 Crores
- Axis Bank Term Loan - rate of interest11.65%
- SVC Bank claim amountRs. 49.72 crore
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