Prime Focus Limited is currently facing insolvency proceedings following a National Company Law Tribunal (NCLT) order admitting a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition, filed by Reliance Alpha Services Private Limited, seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against Prime Focus, citing a default amounting to ₹353.79 crore.
The NCLT’s oral order, pronounced on 6th May 2026, acknowledged the financial creditor’s claim and appointed NPV Insolvency Professionals Private Limited as the Interim Resolution Professional (IRP). The default amount includes interest on a principal sum of ₹200 crore, which was disbursed to Prime Focus between March 2015 and March 2017.
In response to the NCLT’s order, the National Company Law Appellate Tribunal (NCLAT) issued an interim direction on 8th May 2026, temporarily restraining the IRP from taking further steps until the next hearing scheduled for 11th May 2026. This direction was issued following an appeal by one of the company’s directors.
The application by Reliance Alpha Services highlights a loan agreement dated 25th May 2019, under which Prime Focus had acknowledged its repayment obligations. Despite extensions granted by the financial creditor for repayment, Prime Focus failed to meet its obligations, leading to the recall of the loan in July 2023.
The proceedings underscore the financial challenges faced by Prime Focus, as the company navigates the complexities of insolvency resolution. The outcome of the NCLAT hearing will be pivotal in determining the next steps in the insolvency process.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).