The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted L&T Finance’s petition to initiate bankruptcy proceedings against broadband provider Tikona Infinet, over a default of Rs 1.16 billion in unpaid coupon payments on Series ‘E’ compulsorily convertible debentures (CCDs).
In addition, the NCLT has appointed Dhiren Shantilal Shah as the interim resolution professional (IRP) for Tikona.
The dispute stems from a share subscription agreement (SSA) signed in August 2017 and revised in 2018. L&T Finance claimed Tikona defaulted in August 2024. However, Tikona has countered that the Series E CCDs were classified as equity instruments, not financial liabilities, in its balance sheet.
Moreover, according to NSA Legal, CCDs qualify as financial debt irrespective of conversion status.
