Tikona Infinet settles CCD dues with L&T Finance, moves to exit insolvency process

Mumbai-based Tikona Infinet Pvt Ltd strikes to settle its dues associated to Sequence ‘E’ Compulsorily Convertible Debentures (CCDs) with L&T Finance Ltd, bringing closure to the insolvency resolution course of in opposition to the broadband providers supplier.The method for formal withdrawal of the insolvency petition from the NCLT is at present underway, mentioned the corporate in its launch.

“It was a dispute amongst the shareholders about Coupon Rights,” mentioned Prakash Bajpai, founder and chief government of Tikona Infinet, in an announcement. “I’m glad to tell {that a} settlement settlement has been executed already, which can settle all disputes amicably between LTF Restricted and the opposite majority shareholders. A withdrawal utility to NCLT is underneath course of,” he added.

The Mumbai bench of the Nationwide Firm Legislation Tribunal (NCLT) had admitted Tikona Infinet underneath the Corporate Insolvency Resolution Process (CIRP) in an utility filed by L&T Finance with the statement that despite the fact that sure CCDs are structured for conversion into fairness, they might nonetheless be thought-about financial debt if the coupon fee obligation is absolute.

L&T Finance had approached the tribunal alleging a default of Rs 116.01 crore in unpaid coupon funds on Sequence ‘E’ Compulsorily Convertible Debentures (CCDs) by the corporate.

Within the case, Tikona Infinet had maintained that the devices in query had been categorised as fairness securities and didn’t qualify as monetary debt underneath the Insolvency and Chapter Code. The corporate had additionally argued that the alleged coupon entitlements had been topic to the provision of distributable money and had been like dividends, not debt.L&T Finance had argued that the broadband web supplier defaulted on its dues in August 2024. The lender additionally argued that the corporate didn’t honour the coupon funds on Sequence ‘E’ CCDs held by the petitioner. On this case, senior counsel Mustafa Physician, together with Murtaza Kachwalla of Argus Companions, appeared for L&T Finance, whereas Tikona Infinet was represented by advocate Shyam Kapadia and Munaf Virjee of legislation agency AMR Legislation.