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Following this decision, both sides reached a mutually agreeable settlement.
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Zolnierek
Promoters and majority shareholders of Tikona Infinet announced a settlement agreement with L&T Finance on May 10, shortly after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted L&T Finance’s plea alleging default on coupon payments worth ₹116 crore for Series ‘E’ Compulsorily Convertible Debentures (CCDs).
Prakash Bajpai, Founder & CEO of Tikona Infinet, said, “It was a dispute amongst the shareholders about coupon rights. I am glad to inform that a settlement agreement has been executed already which will settle all disputes amicably between L&T and other majority shareholders. A withdrawal application to NCLT is under process.”
Earlier, Tikona Infinet had maintained that the instruments in question were classified as equity security and did not qualify as financial debt under the Insolvency and Bankruptcy Code. Further, it said the alleged coupon entitlements were subject to availability of distributable cash and were in the nature of dividends, not debt. However, the tribunal observed that CCDs may still be considered financial debt if the coupon payment obligation is absolute.
Following this decision, both sides reached a mutually agreeable settlement. The process for formal withdrawal of the insolvency petition from the NCLT is currently underway, said Tikona in a press release.
Published on May 12, 2025
This article first appeared on The Hindu Business Line
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