NCLT Approves Resolution Plan for SAB Events & Governance Now Media Ltd, Mandates Merger with Sri Adhikari Brothers Digital Network

NCLT Approves Resolution Plan for SAB Events & Governance Now Media Ltd, Mandates Merger with Sri Adhikari Brothers Digital Network​

The National Company Law Tribunal (NCLT) has approved the Pre-Packaged Insolvency Resolution Process (PPIRP) for SAB Events & Governance Now Media Limited (the Corporate Debtor), deeming the resolution plan compliant and viable. The decision follows a review of the plan, which involves substantial capital infusion and a scheme of amalgamation with Sri Adhikari Brothers Digital Network Private Limited (SABDNPL).

The approval addresses the financial distress faced by the digital media company, which was struggling due to prolonged revenue decline and reduced income from sponsorship and advertising. As of March 31, 2025, the corporate debtor had reported that current liabilities exceeded current assets by 4.70 times.

Resolution Plan Overview and Objectives​

The resolution plan, prepared by Mr. Kedar Parshuram Mulye (Resolution Professional), was submitted under Section 54K of the Insolvency and Bankruptcy Code (IBC). The plan is designed to achieve the revival and restructuring of SAB Events & Governance Now Media Limited through operational integration with the media assets of the Resolution Applicants (RAs): Sri Adhikari Brothers Assets Holding Private Limited ('SABAHPL') and Sri Adhikari Brothers Digital Network Private Limited ('SABDNPL').

Key features of the plan include:
1. Financial Stabilization: Infusion of necessary capital to restore financial health and ensure continued operation as a going concern.
2. Operational Synergy: Merging SABDNPL into the Corporate Debtor, leveraging shared content libraries, production facilities, and talent resources.
3. Capital Restructuring: Cancellation of existing promoter shareholding and reduction of public shareholding through a 100:5 ratio mechanism.

Financial Structure and Creditor Payments​

The resolution plan details the proposed financial recovery mechanisms, focusing on paying creditors and stabilizing the balance sheet.

The payment structure for various creditor classes is detailed below:


The corporate debtor’s financial distress led to a winding down of obligations toward one primary Financial Creditor. Of the total admitted claim of Rs. 4,53,47,238 from Saturn Fund (the sole Financial Creditor), the plan provides for the payment of Rs. 2,00,00,000.

Capital Infusion and Restructuring Details​

The successful implementation of the plan hinges on significant capital infusion by the Resolution Applicants and external investors. The total funds infused are expected to be Rs. 32,62,50,000.

Funds sources include:

• SABAHPL Subscription: Sri Adhikari Brothers Assets Holding Private Limited is subscribing up to 1,200,000 Equity Shares of the Corporate Debtor at an issue price not less than Rs. 22.50 per equity share, contributing Rs. 2,70,00,000.
• Strategic/Financial Investors: Various unrelated Strategic and Financial Investors are set to infuse capital by subscribing up to 13,30,000 Equity Shares or Convertible Warrants at a minimum issue price of Rs. 22.50 per equity share, contributing Rs. 29,92,50,000.

The company’s pre-resolution structure was as follows:

The plan involves a crucial strategic move: the amalgamation of SABDNPL into the Corporate Debtor. Upon effective implementation, the corporate debtor will be renamed "Sri Adhikari Brothers Digital Network Limited."

Post-Merger Financial Position​

As per the last Audited Financial Statements (March 31, 2026), the company’s Total Assets were Rs. 87.40 Lakhs, and its Net-worth stood at (241.33) Lakhs. The plan is set to ensure that all statutory obligations continue to be met in accordance with applicable law upon approval.

The Tribunal confirmed that the resolution plan meets the requirements of Sections 30(2), 54K, and 54L of the Insolvency and Bankruptcy Code, concluding that it is feasible and viable for the revival of the Corporate Debtor as a going concern.

SABEVENTS Stock Price Movement​

Sab Events & Governance Now Media Limited shares edged higher on Friday, closing at ₹9.20 after gaining ₹0.43, or 4.90%. The equity traded for a total of 4,003 shares during the session.