Cash-Strapped ATM-Manager AGS Transact Admitted Into Insolvency

The Mumbai bench of India's bankruptcy court admitted payments solution provider AGS Transact Technologies Ltd. into insolvency on Monday, a court document showed.

The insolvency plea was filed by one of the company's operational creditors, Securitrans India Pvt., over unpaid dues worth Rs 2.4 crore. The court, while giving its order, has now appointed Brijendra Kumar Mishra as the interim resolution professional for the company.

To put things into context, the appointment of a resolution professional essentially means that they will be handling the debtor's day-to-day operations instead of the board and the company management.

According to the tribunal's order, the corporate insolvency resolution process is in effect from the date of the pronouncement.

Following the admission, a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, has been imposed. This moratorium restricts the initiation or continuation of any legal proceedings against the company.

It also prohibits the transfer or sale of any of AGS' assets, and bars the enforcement of security interests created by the company. No recovery of property from the company’s possession will be permitted while the moratorium is in effect.

The moratorium will continue until the insolvency process is completed or the tribunal approves a resolution plan or passes an order for liquidation.

The tribunal has also ordered that this decision be communicated to the relevant parties including the Registrar of Companies, which must update AGS' status on the Ministry of Corporate Affairs portal within seven working days.

To add some context, AGS Transact has been in the news over the last six months owing to severe business disruptions, coming from financial stress in the company. These disruptions led to multiple bank ATMs being non-functional, as AGS could not ensure cash fulfillment in all of them.

As of April, AGS owed over Rs 592 crore to banks and had overdue payments worth Rs 17 crore. Its subsidiary Securevalue India Ltd. had defaulted on term loans and statutory dues, and owed nearly Rs 127 crore, with a default of Rs 4.2 crore.

ATM safe manufacturer Maxwel Aircon India Pvt., an operational creditor, had also filed an insolvency petition against AGS Transact in front of the Mumbai bench of the National Company Law Tribunal.

On May 30, 2025, AGS informed the stock exchanges that it would not be publishing its financial results for the quarter within the mandated timeframe.

"Company is experiencing personnel shortages due to vacancies in various departments, including the finance department," the cash-strapped ATM manager wrote. "As a result of the personnel shortages and the vacancies in the board and the audit committee, the management is unable to compile the financial data of the company for the reporting period, and consequently, is unable to initiate the audit of such financial statements."

The cash manager had initiated discussions with lenders for restructuring of loans, started negotiations for stake sale in subsidiaries, and was trying to improve collection efforts for its outstanding trade receivables.

Today, there exists a WhatsApp group of nearly 400 AGS employees who have come together to find ways to settle their dues. These people have sent letters to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.

Some permanent employees claim that their provident fund contributions have not been deposited to the EPFO for the last one year.

Amid all this, Chairman Ravi Goyal's firm has failed to pay its employees on time. In a letter from April, he wrote to them, "Your continued support is invaluable, and I sincerely appreciate your trust as we work toward solutions."

"We understand your concerns and assure you that the leadership team is addressing these challenges." he wrote.

"AGS is not shutting down," the email had said in bold letters.