https://www.taxtmi.com/caselaws?id=436422 Debenture holders were treated as financial creditors where the debenture issue was for raising debt, the trust deed and guarantee recognized payment obligations, and the corporate debtor signed as co-obligor and executed an unconditional guarantee. The transaction structure made the guarantors jointly and severally liable on demand, so enforcement was not confined to the trustee. On default, the demand certificate triggered the payment obligation under the transaction documents, establishing debt and default for insolvency purposes. The amount payable was therefore financial debt, and the section 7 application satisfied the threshold for admission. The admission of insolvency proceedings against the corporate debtor was upheld. en-us Wed, 12 Apr 2023 00:00:00 +0530 Thu, 13 Apr 2023 07:58:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436422 Debenture holders were treated as financial creditors where the debenture issue was for raising debt, the trust deed and guarantee recognized payment obligations, and the corporate debtor signed as co-obligor and executed an unconditional guarantee. The transaction structure made the guarantors jointly and severally liable on demand, so enforcement was not confined to the trustee. On default, the demand certificate triggered the payment obligation under the transaction documents, establishing debt and default for insolvency purposes. The amount payable was therefore financial debt, and the section 7 application satisfied the threshold for admission. The admission of insolvency proceedings against the corporate debtor was upheld. Case-Laws Insolvency and Bankruptcy Wed, 12 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436422