The National Company Law Tribunal (NCLT), Mumbai Bench, has orally pronounced admission of an insolvency petition against Prime Focus Ltd filed by Reliance Alpha Services Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC). The petition relates to an alleged financial debt of Rs 353.79 crore, including interest.
In a regulatory filing on May 7, Prime Focus said it was informed about the oral pronouncement around 8.18 pm on May 6 and that the written order is awaited. The company said it has already approached the National Company Law Appellate Tribunal (NCLAT) seeking urgent relief, including a stay on the operation of the order.
Prime Focus disputed the claim, saying no amount was ever disbursed under the 2019 loan agreement cited in the petition and argued that the petitioner therefore does not qualify as a “financial creditor” under the IBC.
The company said the dispute is linked to a 2014 Business Transfer Agreement and is already the subject of a commercial suit before the Bombay High Court.
Prime Focus said its business operations, including global VFX and post-production services, continue without disruption.
Founded by Namit Malhotra, Prime Focus is an Indian media and entertainment services company with operations spanning visual effects, animation, post-production and cloud-based media technology services. Its subsidiaries include Oscar-winning VFX studio DNEG, which has worked on films such as Dune and Oppenheimer.
The group is also producing Ramayana, a two-part adaptation directed by Nitesh Tiwari and backed by Namit Malhotra. The film, starring Ranbir Kapoor, Yash and Sai Pallavi, is being positioned as one of the most ambitious and expensive Indian film projects to date.
The company's stock was down 1.25% to Rs 303.75 per share at 12.28 pm.
In a regulatory filing on May 7, Prime Focus said it was informed about the oral pronouncement around 8.18 pm on May 6 and that the written order is awaited. The company said it has already approached the National Company Law Appellate Tribunal (NCLAT) seeking urgent relief, including a stay on the operation of the order.
Prime Focus disputed the claim, saying no amount was ever disbursed under the 2019 loan agreement cited in the petition and argued that the petitioner therefore does not qualify as a “financial creditor” under the IBC.
The company said the dispute is linked to a 2014 Business Transfer Agreement and is already the subject of a commercial suit before the Bombay High Court.
Prime Focus said its business operations, including global VFX and post-production services, continue without disruption.
Founded by Namit Malhotra, Prime Focus is an Indian media and entertainment services company with operations spanning visual effects, animation, post-production and cloud-based media technology services. Its subsidiaries include Oscar-winning VFX studio DNEG, which has worked on films such as Dune and Oppenheimer.
The group is also producing Ramayana, a two-part adaptation directed by Nitesh Tiwari and backed by Namit Malhotra. The film, starring Ranbir Kapoor, Yash and Sai Pallavi, is being positioned as one of the most ambitious and expensive Indian film projects to date.
The company's stock was down 1.25% to Rs 303.75 per share at 12.28 pm.
