Debenture trivia

Yasaswi Gomes new (Finance ) (4514 Points)

12 December 2022  

Hi 

Company X raises new dentures and issues for 50 lakh. The lender buys the bonds and the company receives issue proceeds for 45 lakhs. The lender fails on his last call of 5 lakhs. What must the company do?

1. Forfeit 45 laks and go to courts and collect interest as penalty on the outstanding 5 lakhs until legal settlement

2. Create a legal provision 

3. There are other procedures for this