The National Company Law Tribunal (NCLT), Bengaluru Bench, has dismissed insolvency proceedings against Satchmo Holdings Limited , marking a significant development in the company's ongoing financial restructuring efforts.

Key Developments

• Insolvency Proceedings Dismissed: The NCLT Bengaluru Bench has dismissed the insolvency proceedings initiated by JCF Asset Reconstruction Company (ARC) against Satchmo Holdings under Section 7 of the Insolvency and Bankruptcy Code, 2016.

• One-Time Settlement (OTS) Payment: Satchmo Holdings had previously paid Rs. 70.00 crores as part of a One-Time Settlement agreement with JCF ARC.

• Dispute Over OTS Agreement: The company is currently disputing the ARC's subsequent revocation of the OTS agreement and is pursuing legal recourse.

Timeline of Events

Implications and Next Steps

The dismissal of insolvency proceedings by the NCLT is a positive development for Satchmo Holdings, potentially providing the company with breathing room to address its financial challenges outside of the formal insolvency process. However, the ongoing dispute regarding the revocation of the OTS agreement suggests that the company's financial restructuring efforts may face further challenges.

Satchmo Holdings has stated that it is taking appropriate legal measures to contest the revocation of the OTS agreement. The company has also committed to keeping stakeholders informed of any material developments in compliance with SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

As the situation continues to evolve, investors and stakeholders will likely be watching closely for further updates on the company's financial position and the resolution of its ongoing disputes with JCF ARC.

Satchmo Holdings Limited has reported a significant turnaround in its financial performance for the quarter ended September 30, 2025, while also making progress on debt settlement and project exits. However, the company continues to face financial challenges and auditor concerns.

Q2 FY26 Financial Performance

Satchmo Holdings Limited has reported a substantial improvement in its financial results for the second quarter of fiscal year 2026:

All figures in ₹ crore

The company's profit for Q2 FY26 marks a significant turnaround from the loss reported in the previous quarter. The six-month profit also shows an improvement compared to the same period last year.

Debt Settlement and Project Exits

Satchmo Holdings has made progress in addressing its debt and streamlining its project portfolio:

• Settled ₹77.56 crore with JC Flower Asset Reconstruction Company as part of a ₹109 crore one-time settlement proposal.
• Exited two real estate projects:
  • Plaza project: Formalities completed
  • Soho project: Agreement signed, formalities in process

Ongoing Financial Obligations

Despite the recent improvements, the company still faces several financial obligations:

• Outstanding debt of ₹15.54 crore to HDFC Limited
• Statutory dues:
  • VAT: ₹12.61 crore
  • Provident fund: ₹0.57 crore

Auditor Concerns

The company's auditors have issued an adverse opinion, citing going concern issues due to:

• Negative net worth
• Working capital deficiency

These concerns highlight the ongoing financial challenges faced by Satchmo Holdings, despite the recent profit and debt settlement efforts.

While the company has shown improvement in its quarterly performance and taken steps to address its debt, the auditor's concerns and ongoing financial obligations suggest that Satchmo Holdings still has work to do to stabilize its financial position. Investors and stakeholders may want to closely monitor the company's progress in addressing these challenges in the coming quarters.