MBL Infrastructures Ltd (MBL) has received a significant boost as its resolution plan for its wholly owned subsidiary, MBL (MP) Toll Road Company Ltd (MPTRCL), has been approved by the Adjudicating Authority. This development, announced on September 16, 2025, marks a crucial step in the company's efforts to strengthen its financial position and streamline operations.

Key Points of the Resolution Plan

• Equity Infusion: MBL will inject Rs 9.11 crores as equity into MPTRCL.
• Existing Deposit: The equity infusion includes Rs 2.00 crores already deposited as EMD (Earnest Money Deposit) and Performance Security.
• Debt Settlement: The infused amount, along with MPTRCL's existing cash balances and liquid assets as of June 30, 2025, will be used to settle all dues with Punjab National Bank (International) Ltd (PNBIL).
• Timeline: Full settlement with PNBIL is to be completed within 30 days of the plan's approval.
• Debt-Free Status: Post-settlement, all liabilities of MPTRCL will be extinguished, rendering it a debt-free company.

Impact on MPTRCL Operations

MPTRCL, which operates the Waraseoni-Lalbarra Road project in Madhya Pradesh, stands to benefit significantly from this resolution:

• Concession Agreement: The project operates under a Build-Operate-Transfer (BOT) concession agreement initiated in 2011.
• Revenue Streams: MPTRCL receives semi-annual payments of Rs 3.26 crores plus toll revenues.
• Management Control: Following the resolution plan's implementation, management control of MPTRCL will return to its Board of Directors.

Financial Implications

The approved resolution plan is expected to have positive financial implications for both MBL and MPTRCL:

1. Debt Elimination: MPTRCL will become debt-free, potentially improving its financial flexibility and profitability.
2. Future Benefits: MBL stands to gain from surplus arising out of toll fees, annuities, and receivables after maintaining MPTRCL as a going concern.

About MBL Infrastructure Ltd

MBL Infrastructure Ltd, established in 1995 and listed since 2010, is a key player in civil engineering infrastructure projects. The company's portfolio includes:

• Roads & Highways (Construction, BOT, O&M)
• Building, Housing & Urban Infrastructure
• Railways/Metro
• Other Infrastructure projects

With a pan-India presence, MBL has positioned itself as a significant contributor to the country's infrastructure development.

The approval of this resolution plan marks a strategic move for MBL Infrastructure, potentially strengthening its market position and financial health. As the infrastructure sector continues to play a crucial role in India's economic growth, such developments are likely to be closely watched by investors and industry observers alike.

MBL Infrastructures Ltd (MBL) has received approval from the Adjudicating Authority for its resolution plan concerning its wholly owned subsidiary, MBL(MP) Toll Road Company Ltd (MPTRCL), under the Insolvency and Bankruptcy Code, 2016. This development marks a significant step towards financial restructuring and debt resolution for the infrastructure company.

Key Points of the Resolution Plan

• Equity Infusion: MBL will inject Rs 9.11 crore as equity into MPTRCL.
• Existing Deposit: The equity infusion includes Rs 2 crore already deposited as Earnest Money Deposit (EMD) and Performance Security.
• Debt Settlement: The infused amount, along with MPTRCL's existing cash balances and liquid assets, will be used to settle dues with Punjab National Bank (International) Ltd (PNBIL).
• Settlement Timeline: Full and final settlement with PNBIL is to be completed within 30 days.
• Debt-Free Status: Post-settlement, all liabilities of MPTRCL will be extinguished, rendering it a debt-free company.

Management and Control

• The Board of Directors' powers for MPTRCL have been reinstated.
• Management control will now vest with the MPTRCL Board.

Financial Implications

• Future surplus from toll fees and receivables will be available to MBL.
• The exact amounts of these surpluses will be quantified and disclosed in due course.

Additional Details from LODR Disclosure

The LODR (Listing Obligations and Disclosure Requirements) disclosure provides further clarity on the resolution process:

• The resolution plan was approved by the Hon'ble Adjudicating Authority.
• PNBIL is identified as the sole secured financial creditor of MPTRCL.
• The settlement amount includes cash and bank balances, liquid assets such as Fixed Deposits, forfeiture amounts, and annuities accruals as of the reference date, net of CIRP (Corporate Insolvency Resolution Process) expenses.
• Post-settlement, neither MPTRCL and MBL will pursue claims against PNBIL, nor will PNBIL pursue any claims against them.

This resolution marks a crucial turning point for MBL Infrastructure and its subsidiary MPTRCL, potentially strengthening their financial position and operational capabilities in the infrastructure sector. The successful implementation of this plan could pave the way for improved performance and growth opportunities for both entities in the future.