Business · India Bureau
NCLT admits Reliance Entertainment Studios to insolvency proceedings
The National Company Law Tribunal's Mumbai bench has admitted Reliance Entertainment Studios to insolvency proceedings, recognizing a financial debt of ₹20 crore paid by Pen India for film release obligations. An interim resolution professional has been appointed and moratorium imposed on the company.
LSN India ·
The Mumbai bench of the National Company Law Tribunal (NCLT) has ordered the admission of Reliance Entertainment Studios into corporate insolvency resolution proceedings on the basis of a default exceeding the statutory threshold. The tribunal recognized a financial debt of ₹20 crore that Pen India had paid towards film release commitments, treating the amount as an outstanding liability under the Insolvency and Bankruptcy Code (IBC). Following the admission order, the NCLT has imposed a moratorium on the company, restricting further legal proceedings against it. An interim resolution professional has been appointed to oversee the affairs of Reliance Entertainment Studios during the insolvency process. The decision marks a significant development in the financial distress at the entertainment company, with the resolution proceedings now set to determine the company's future course of action and creditor recovery prospects.