Prime Focus Limited (PFOCUS) has been informed about the oral pronouncement by the National Company Law Tribunal (NCLT), Mumbai Bench, on May 6, 2026, admitting a petition filed by Reliance Alpha Services Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The petitioner alleges a financial debt of ₹353.79 crore (including interest) stemming from a Loan Agreement executed in 2019. The written order is still awaited. Immediately following the oral pronouncement, Prime Focus Limited has filed an appeal/application before the National Company Law Appellate Tribunal (NCLAT) seeking urgent relief, including a stay on the order's operation. The company maintains that no amount was disbursed by the petitioner under the Loan Agreement, thus arguing that the petitioner does not qualify as a financial creditor under the IBC. The dispute is linked to a Business Transfer Agreement (BTA) from 2014, which is actively contested by the company, and for which Prime Focus has initiated a commercial suit before the Bombay High Court. Prime Focus Limited assures all stakeholders that its business operations, including global VFX and post-production services, continue without disruption. The company's operational and financial fundamentals remain intact, and management is confident in its legal position, committed to protecting stakeholder interests.
