The NCLAT held that Compulsory Convertible Debentures (CCDs) ...

CCD holders can initiate insolvency proceedings against defaulting companies as CCDs involve time value of money, hence 'financial debt'.

December 9, 2024

Case Laws IBC AT

The NCLAT held that Compulsory Convertible Debentures (CCDs) issued by the Corporate Debtor constituted a 'financial debt' u/s 5(8) as the transaction involved time value of money. The debenture subscription agreement contemplated redemption and conversion was at the option of the investor. Considering the clauses, the CCDs reflected time value of money, making it a financial debt. The NCLAT dismissed the appeal, upholding the adjudicating authority's order allowing the respondent's application.

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The NCLAT held that Compulsory Convertible Debentures (CCDs) ...

CCD holders can initiate insolvency proceedings against defaulting companies as CCDs involve time value of money, hence 'financial debt'.

December 9, 2024

Case Laws IBC AT

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