Compulsory Convertible Debentures: Whether ‘Financial Debt’ or ‘Equity’
An appeal was filed under section 62(1) of the Insolvency and Bankruptcy Code, 2016 (IBC)IBC, challenging the decision of the National Company Law Appellate Tribunal’s (NCLAT) which held that Compulsorily Convertible Debentures (CCDs) issued under “put option” are to be treated as equity for the purposes of the treatment under the IBC. Although the hon’ble…