Sanction of Scheme of Arrangement and Amalgamation by Hon'ble NCLT Chennai Bench
As filed · Sonata Software Limited has informed the Exchange about sanction of Scheme of Arrangement and Amalgamation by Hon'ble NCLT Chennai Bench
What happened
FactSonata Software Limited has informed the Exchange about sanction of Scheme of Arrangement and Amalgamation by Hon'ble NCLT Chennai Bench. sanctioned by the Hon’ble National Company Law Tribunal, Chennai Bench (“NCLT”) by its order passed. A copy of the order approving the Scheme has been made available on the NCLT website today, i.e., 11th.
Why it matters
CapitSignal interpretationOnce an insolvency process is admitted, control of the company passes from the board to a resolution professional and equity ranks last in any recovery.
What management said before
Prior statements by this company that CapitSignal has recorded changing.
Margins
Withdrawnwe will be able to recover about 60 to 70% of this margin impact in Q4, which is what exactly happened.
We expect the margin to come back and I am not able to define a stable state EBITDA margin I do not want that will become a guidance kind of a nature, but definitely it will move towards a positive direction for us in the coming quarters and we are very, very confident to move the needle on EBITDA in the coming quarters very positively.
Change
FactImplication
CapitSignal interpretationGuidance
Revisedwe feel that in time to come, 3 to 5 years time, this could be about a quarter of a $1 billion type of a business, $250 million type of business in about three to 5 years time.
we want to be $1.5 billion in about three to four years time.
Change
FactImplication
CapitSignal interpretationWatch next
Fact- Admission or rejection of the application by the tribunal
- Appointment of a resolution professional
- Claims admitted against the company
- we will be able to recover about 60 to 70% of this margin impact in Q4, which is what exactly happened. (management committed by Q4 FY24)
- we feel that in time to come, 3 to 5 years time, this could be about a quarter of a $1 billion type of a busin (management committed by FY27)
Evidence
- Sonata Software Limited has informed the Exchange about sanction of Scheme of Arrangement and Amalgamation by Hon'ble NCLT Chennai Bench(opens the original filing in a new tab)
- Earlier statement · Q4 FY24
- Latest statement · Q1 FY27
- Earlier statement · Q4 FY24
- Latest statement · Q4 FY24
How CapitSignal classified this
- Reasoning:
- INSOLVENCY base 93; +5 quantified amount; explicit insolvency/default evidence present; matched on subject
- Matched on:
- the filing's own subject line
- Confidence in the event type:
- 75%