NCLT Mumbai Admits Insolvency Plea Against Prime Focus

Prime Focus Faces Insolvency Proceedings After NCLT Mumbai Admits Petition

The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a petition filed by Reliance Alpha Services Private Limited against Prime Focus Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition, which was filed on May 6, alleges a financial debt of Rs 353.79 crore (including interest) under a Loan Agreement executed in 2019.

Prime Focus, a company that provides creative and technical services to the film, TV, and advertising industries, has immediately filed an appeal with the National Company Law Appellate Tribunal (NCLAT) seeking urgent relief, including a stay of the order. The company maintains that no amount was disbursed under the loan agreement in question.

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The company's global VFX and post-production operations remain fully functional, and all customer engagements continue to be serviced as normal. Prime Focus' employees, vendors, and partners continue to work in the usual manner, and the company's operational and financial fundamentals remain intact.

On May 7, Prime Focus' shares on the BSE closed nearly 3% higher at Rs 308.5 apiece. The firm's shares have risen a whopping 215% in the last year, and the market capitalisation of the stock is nearly Rs 24,000 crore.