Telephone Cables Ltd Enters Insolvency Process With ₹5,920.87 Crore Claims

Telephone Cables Limited has officially entered the insolvency resolution process following an order from the National Company Law Tribunal (NCLT) on February 19, 2026.

A significant ₹5,920.87 crore in verified financial claims has been filed against the company. The Committee of Creditors (CoC), now formally established, will oversee these claims.

Key Developments

The NCLT Chandigarh Bench has formally admitted Telephone Cables Limited into the Corporate Insolvency Resolution Process (CIRP). This marks the beginning of formal proceedings under the Insolvency and Bankruptcy Code, 2016.

Ducturus Resolution Professionals Pvt. Ltd. has been appointed as the Interim Resolution Professional (IRP) to manage the company's affairs during this period.

The Committee of Creditors (CoC) was constituted on March 13, 2026, comprising financial creditors with substantial verified claims totaling ₹5,920.87 crore. Key creditors include:

• Omkara Assets Reconstruction Pvt Ltd (₹51,997.89 crore, 87.82% voting share)
• Kotak Mahindra Bank Ltd (₹3,684.81 crore, 6.22%)
• Punjab & Sind Bank (₹2,155.00 crore, 3.64%)
• Canara Bank (₹1,371.00 crore, 2.32%)

What This Means

This development signifies that Telephone Cables Limited is now under strict insolvency resolution procedures. The company's control has effectively shifted from its management and shareholders to its financial creditors.

Shareholder value faces significant risk as the main goal of the insolvency process is to resolve the company's debts. This could involve a restructuring plan or, if unsuccessful, liquidation of assets.

The process aims to maximize the value of the company's assets and address the interests of all stakeholders.

Background

Telephone Cables Limited, incorporated in 1983, has faced a complex legal history for over two decades. A winding-up petition was initially filed in 2003, leading to a winding-up order from the Punjab & Haryana High Court in July 2015.

The company had been experiencing financial stress, struggling with financial discipline, which resulted in loan recalls and unfulfilled commitments to creditors.

Its debt was initially extended by IDBI, later assigned to Stressed Assets Stabilization Fund (SASF), and eventually acquired by Omkara Assets Reconstruction Pvt Ltd in September 2024, which subsequently filed the application for insolvency.

In August 2015, SEBI had also issued an adjudication order against the company for failing to comply with SCORES authentication and redress investor grievances.

What Changes Now

Shareholders' control over the company has effectively ceased, with the Committee of Creditors now holding decision-making power.

The Interim Resolution Professional (IRP) will manage the day-to-day operations, preserve the company's assets, and facilitate the resolution process.

The focus will shift towards formulating a viable resolution plan, which could involve financial restructuring, sale of the business, or management changes.

If no resolution plan is approved within the stipulated time, the company could face liquidation.

Key Considerations

Restrictions apply to financial creditors who are related parties of the Corporate Debtor. Their rights to representation, participation, or voting in Committee of Creditors meetings may be limited, especially if their status arose solely from debt conversion before the insolvency process began.

Industry Peers

Telephone Cables Limited operates in the Indian wire and cable sector, which includes well-established and financially healthier players. Competitors such as Polycab India Ltd., KEI Industries Ltd., Finolex Cables Ltd., and RR Kabel Ltd. are significant manufacturers with diversified product portfolios and strong market positions.

These peers represent more stable entities within the sector, highlighting the significant challenges faced by Telephone Cables Limited.

Next Steps to Watch

• The CoC members providing details of their authorized representatives for attending meetings.
• The appointment of a Resolution Professional (if the IRP is interim) and their management of company affairs.
• The formulation and submission of potential resolution plans by interested parties, including any expressions of interest from entities like Jonjua Overseas Limited.
• The timeline for CoC meetings and voting on any proposed resolution plan.
• The outcome of the insolvency process, whether it leads to a successful resolution or eventual liquidation.