Prime Focus Disputes ₹353.79 Crore Debt Claim, Challenges NCLT Order

The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition against media and VFX company Prime Focus over an alleged debt of ₹353.79 crore.

The plea was filed by Reliance Alpha Services under Section 7 of the Insolvency and Bankruptcy Code (IBC).

Prime Focus is known for its work in media services, post-production, and visual effects. The development has drawn attention because of the company’s presence in the entertainment and VFX industry.

Amid the news, on 13 May 2026 at around 1:45 pm, Prime Focus shares were trading at ₹277.60, down 3.88%, on the National Stock Exchange.

Company Moves NCLAT Against Order

Soon after the NCLT decision, Prime Focus challenged the order before the National Company Law Appellate Tribunal (NCLAT).

The company argued that the debt claim itself is disputed. It said no money was actually disbursed under the loan agreement being referred to in the case. Because of this, Prime Focus questioned whether the petitioner can be treated as a financial creditor under the IBC framework.

The company also said the matter is connected to older business transactions and agreements that are already under challenge before the Bombay High Court.

According to Prime Focus, the NCLT had only delivered an oral pronouncement, while the detailed written order was still awaited at the time of its response.

Company Says Operations Continue Normally

Prime Focus said its operations remain unaffected despite the insolvency proceedings. The company stated that its day-to-day activities across media and entertainment services are continuing as usual. It also said it is taking all available legal steps to challenge the insolvency admission.

This is important because admission of an insolvency plea does not automatically mean liquidation or a shutdown of operations. In many cases, companies continue functioning while legal proceedings move ahead.

Also Read - Cipla Q4 FY 26 Profit Falls 55% To ₹555 Crore, Revenue Dips 3%

Why The Case Matters

The NCLT order has put fresh attention on Prime Focus at a time when investor sentiment around media and entertainment companies remains sensitive to legal and financial disputes.

For a company that works with large studios, production houses, and global clients, even a legal development like this can raise questions around stability and future business visibility. That is one reason the market reaction remained cautious after the news surfaced.

What happens next will largely depend on the appellate tribunal’s response and the detailed written order from the NCLT. For now, the company has said it will continue business operations as usual while pursuing legal remedies.

Sources:

Economic Times

CNBC