MT Educare reports Rs 24.09 crore loan repayment defaults

MT Educare Limited disclosed Rs 24.09 crore of current principal and interest defaults as of September 30, 2026, comprising Rs 16.44 crore of principal and Rs 7.65 crore of interest. MT Educare also reported Rs 32.33 crore of outstanding borrowings and Rs 23.99 crore of invoked corporate guarantees while its Corporate Insolvency Resolution Process continued.

What loan repayment defaults did MT Educare disclose?

MT Educare disclosed Rs 16.44 crore of principal defaults and Rs 7.65 crore of interest defaults, which total Rs 24.09 crore. Its October 30, 2026 disclosure identifies term loans, overdraft facilities and corporate guarantees as the relevant obligations, and names Axis Bank Ltd and Prudence ARC as lenders. The stated default date was September 30, 2026, with defaults running since March 2021 onwards.

Principal made up the larger part of the Rs 24.09 crore disclosed default amount, exceeding interest by Rs 8.79 crore. MT Educare did not disclose a payment, settlement, restructuring or recovery measure in the October 30, 2026 filing. It instead said that, in view of the continuing Corporate Insolvency Resolution Process, or CIRP, there had been no changes in information submitted previously.

Which facilities make up MT Educare's outstanding borrowings?

MT Educare reported total outstanding borrowings from banks and financial institutions of Rs 32.33 crore. The disclosure lists an Axis Bank Ltd term loan of Rs 7.16 crore, an Axis Bank Ltd overdraft of Rs 4.98 crore and a Prudence ARC facility of Rs 20.19 crore. Those three facility amounts add to the reported Rs 32.33 crore total.

The Axis Bank Ltd term loan and overdraft were each described as secured, with two-year tenures and interest rates of 11.65% and 11.20%, respectively. The Rs 20.19 crore Prudence ARC facility was also listed as secured, with a two-year tenure and a 13.75% interest rate. The Prudence ARC facility was Rs 13.03 crore larger than the Axis Bank Ltd term loan and Rs 15.21 crore larger than the overdraft.

What corporate guarantees have been invoked against MT Educare?

MT Educare reported Rs 23.99 crore of invoked corporate guarantees in addition to its own borrowings. Axis Bank Ltd invoked a secured Rs 7.3 crore guarantee for Sri Gayatri Education Society, while Prudence ARC invoked a secured Rs 16.69 crore guarantee for Lakshya Forum for Competitions Private Limited. The Prudence ARC guarantee was Rs 9.39 crore higher than the Axis Bank Ltd guarantee.

The company said the stated financial defaults were in accordance with claims received from secured financial creditors. The Rs 23.99 crore of invoked guarantees is presented separately from the Rs 32.33 crore of outstanding company borrowings. The filing does not describe the arithmetic combination of those two categories as MT Educare's total financial indebtedness, because claim verification remains in process under CIRP.

A separate Rs 49.72 crore claim from Shamrao Vithal Co-op Bank Ltd, also called SVC Bank in the filing, concerned a corporate guarantee for subsidiary Labh Ventures India Pvt Ltd. MT Educare said the claim was rejected because SVC Bank had not invoked the guarantee by December 16, 2022, the CIRP commencement date. An application before the National Company Law Tribunal, Mumbai, was dismissed on March 27, 2025, and SVC Bank's appeal before the National Company Law Appellate Tribunal remained pending.

How does CIRP affect MT Educare's reported debt position?

MT Educare has been in CIRP since December 16, 2022, under an order of the National Company Law Tribunal, Mumbai dated the same day. The filing says that claims duly verified, as well as further verification, were in process pursuant to the public announcement. It therefore does not provide a final total-financial-indebtedness figure beyond the reported defaults, borrowings and invoked guarantees.

The filing also records changes in the insolvency administration after the December 2022 order. Ashwin Bhavanji Shah was appointed interim resolution professional, and the Committee of Creditors was constituted on August 21, 2023. Arihant Nenawati was appointed resolution professional on January 22, 2024, in an application filed by Prudent ARC before the National Company Law Tribunal, Mumbai Bench.

The disclosure's lender references require distinction between its table and accompanying note. The tables name Prudence ARC, while the note says loans previously held by Assets Care & Reconstruction Enterprises Limited were reassigned to Prudent ARC Limited under a deed of assignment dated August 11, 2023. MT Educare did not explain the difference in naming between Prudence ARC in the tables and Prudent ARC Limited in the note.

What do the March 2021 and September 2026 dates show?

MT Educare gave September 30, 2026 as the date of default and also stated that defaults had existed since March 2021 onwards. The filing does not provide annual movements in principal, interest or lender claims between March 2021 and September 2026. It consequently identifies a current default position at September 30, 2026 without setting out a period-by-period history of the balance.

The disclosed timeline places the March 2021 default history before the December 16, 2022 start of CIRP. By October 30, 2026, MT Educare said no changes had occurred in information previously submitted during the ongoing process. That statement is limited to the information in the disclosure and does not state that lender claims or verification work have been completed.

Conclusion

MT Educare's filing identifies Rs 24.09 crore of principal and interest defaults, Rs 32.33 crore of outstanding borrowings and Rs 23.99 crore of invoked corporate guarantees. Axis Bank Ltd and Prudence ARC are named in the reported facilities and guarantee exposures, while the CIRP framework means the final treatment of creditor claims remains subject to verification.

The next disclosed matters to watch are further claim verification under the CIRP that began on December 16, 2022, and the unresolved appeal by SVC Bank. That appeal concerns the rejected Rs 49.72 crore corporate-guarantee claim and remained pending before the National Company Law Appellate Tribunal as of the October 30, 2026 filing.