MT Educare Limited Discloses Defaults on Loan Payments
MT Educare Limited announced on April 1st, 2026, that it has defaulted on payments of interest and principal related to loans from banks and financial institutions. The delays stem from disruptions in the education sector caused by COVID-19 pandemic restrictions and subsequent challenges faced by the company.As of March 31st, 2026, the company’s total outstanding loans and revolving facilities from banks and financial institutions amounted to INR 32.33 crore, with no default reported. The company has no outstanding unlisted debt securities.
The company also disclosed corporate guarantees totaling INR 7.3 crore with Axis Bank Ltd. and INR 16.69 crore with Asset Care & Reconstruction Enterprise Limited, which were duly re-assigned to Prudent ARC Limited.
Shamrao Vithal Co-op Bank Ltd. (SVC) initially claimed INR 49.72 crore related to a corporate guarantee for a subsidiary, Labh Ventures India Pvt Ltd. However, this claim was rejected as the corporate guarantee was not invoked prior to the commencement of the insolvency process. SVC Bank Ltd. appealed the rejection, and a decision is still pending.
The financial defaults are in accordance with claims received from secured financial creditors. The company is currently undergoing a Corporate Insolvency Resolution Process (CIRP) initiated on December 16th, 2022, under the Insolvency and Bankruptcy Code, 2016. Arihant Nenawati serves as the Resolution Professional.
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