Conversion of loan into equity

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2011 a Listed company has defaulted in payment of its dues. the bank has sought coversion of loan into equity. however the company has not responded to the said conversion nor acted upon. whether the bank can apporach SEBi/ Exchange with regard to the said inaction of the Company apart from RBi and High Court? Please guide

Guest

Guest (Expert)

22 December 2011 Bank can not approach SEBI and stock exchange for inaction on part of company.

Charu Srivastava

Charu Srivastava (Expert)
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22 December 2011 No bank cannot threaten the company for the conversion on default unless agreement says so.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2011 Thn is it nly the specifc performance route d nly optn

Charu Srivastava

Charu Srivastava (Expert)
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23 December 2011 u meant to say is it mentioned in the Contract.
First of the the Bank will make good its payment through sale of security charged with Bank.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2011 Madam, the bank has a residual charge on all the assets of the COmpany and as an anotehr option the Bank has the right of conversion in terms of the Loan agreement. whetehr the bank can approach CLB in this matter? Kidnly advise