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Prime Focus Faces Insolvency Over ₹353 Cr Debt
7 May
Summary
- NCLT admitted petition against Prime Focus for ₹353.79 crore debt.
- Reliance Alpha Services filed the plea over a 2019 loan agreement.
- Prime Focus disputes claims and has filed an appeal at NCLAT.
The National Company Law Tribunal's Mumbai Bench has admitted a petition against Prime Focus Limited, initiating insolvency proceedings over an alleged financial debt of ₹353.79 crore. Reliance Alpha Services Private Limited filed the petition, claiming the debt under a 2019 loan agreement. The NCLT's oral pronouncement on May 6, 2026, led to this development, with a written order pending.
Prime Focus has responded by filing an appeal with the National Company Law Appellate Tribunal (NCLAT), seeking an urgent stay on the order. The company contends that the petitioner did not disburse any funds and therefore does not qualify as a financial creditor. This dispute is reportedly linked to a 2014 Business Transfer Agreement, which Prime Focus is contesting in the Bombay High Court.
Despite the legal challenges, Prime Focus asserts that its global VFX and post-production operations remain unaffected and continue to serve all customer engagements normally. The company expressed confidence in its legal position during the appellate proceedings.
