06-18-2011, 06:57 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bilalfca</i>
<br />salam to all members.
someone plz guide me on this Sec 116 (1)
quote
"where either before or after the commencement of this ordinance a company has redeemed any debentures previously issued, unless the articles or the conditions of issue expressly otherwise provide, or unless the debentures have been redeemed in pursuance of any obligation on the company so to do, not being an obligation enforceable only by the person to whom the redeemed debentures were issued or his assigns, shall have power, and shall be deemed always to have had power, to keep the debentures alive for the purpose of re-issue....................... not previously bee issued"
unquoted.
"or unless the debentures have been redeemed in pursuance of any obligation................................ or his assigns," what does the it mean?
someone plz elaborate it...
thnx
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hi,
I can see application of section 271 and/or more specifically part X of the Ordinance where the Company may be required to redeem debentures through order of court. This may happen, if for example, the lenders of the Company (prior to issuance of new debentures) through financial covenant restricted Company within certain debt to equity ratio or Net debt to EBITDA ratio etc. In this case, the issuance of debentures may be legal in itself but since the scenerio after issuance of debentures disturbes financial position of the Company in such way to triger clause of another agreement which Company has with its lenders.
Let me know about your comments on it.
<br />salam to all members.
someone plz guide me on this Sec 116 (1)
quote
"where either before or after the commencement of this ordinance a company has redeemed any debentures previously issued, unless the articles or the conditions of issue expressly otherwise provide, or unless the debentures have been redeemed in pursuance of any obligation on the company so to do, not being an obligation enforceable only by the person to whom the redeemed debentures were issued or his assigns, shall have power, and shall be deemed always to have had power, to keep the debentures alive for the purpose of re-issue....................... not previously bee issued"
unquoted.
"or unless the debentures have been redeemed in pursuance of any obligation................................ or his assigns," what does the it mean?
someone plz elaborate it...
thnx
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hi,
I can see application of section 271 and/or more specifically part X of the Ordinance where the Company may be required to redeem debentures through order of court. This may happen, if for example, the lenders of the Company (prior to issuance of new debentures) through financial covenant restricted Company within certain debt to equity ratio or Net debt to EBITDA ratio etc. In this case, the issuance of debentures may be legal in itself but since the scenerio after issuance of debentures disturbes financial position of the Company in such way to triger clause of another agreement which Company has with its lenders.
Let me know about your comments on it.
