MT Educare Reports Rs 32.33 Crore Debt Default Under CIRP

MT Educare Limited has officially reported total debt defaults of Rs 32.33 crore, comprising Rs 24.09 crore in principal and Rs 8.26 crore in interest.

Reader Takeaway: Company remains in insolvency; debt burden and invoked guarantees highlight the severity of its current financial distress.

What just happened

As part of its ongoing Corporate Insolvency Resolution Process (CIRP), MT Educare has released a breakdown of its outstanding defaults. The company owes Rs 20.19 crore to Prudence ARC and Rs 12.16 crore to Axis Bank. These defaults have been accumulating since March 2021. Additionally, the company disclosed that corporate guarantees invoked for other entities—specifically Sri Gayatri Education Society and Lakshya Forum for Competitions Pvt Ltd—remain outstanding, adding further pressure to its balance sheet.

The backstory

MT Educare has been under CIRP since December 16, 2022, following an NCLT Mumbai order. Arihant Nenawati, appointed as the Resolution Professional (RP) in January 2024, is currently overseeing the process. The company is also navigating complex legal battles. A notable instance is the claim of Rs 49.72 crore submitted by Shamrao Vithal Co-op Bank Ltd regarding a guarantee for subsidiary Labh Ventures India Pvt Ltd. While the NCLT rejected this claim in March 2025 because the guarantee was not invoked before the insolvency date, the bank has escalated the matter to the NCLAT, where the appeal remains pending.

What to track next

Shareholders should monitor updates from the NCLAT regarding the pending appeal and any progress in the broader CIRP proceedings led by the RP. The resolution process remains the primary driver for the company's future corporate structure and liability management.