https://www.taxtmi.com/caselaws?id=766358 Funds infused under a memorandum of agreement may qualify as financial debt under the Insolvency and Bankruptcy Code where there is actual disbursal, repayment obligation, and commercial effect of borrowing. The absence of an express interest clause does not by itself prevent classification as financial debt if the overall arrangement is a financing transaction, particularly where the funds are used to revive the corporate debtor's operations and the lender receives commercial benefits such as commission or security-like rights until repayment. On this reasoning, such an arrangement can support financial creditor status for a Section 7 application. en-us Wed, 19 Feb 2025 00:00:00 +0530 Mon, 24 Feb 2025 08:05:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766358 Funds infused under a memorandum of agreement may qualify as financial debt under the Insolvency and Bankruptcy Code where there is actual disbursal, repayment obligation, and commercial effect of borrowing. The absence of an express interest clause does not by itself prevent classification as financial debt if the overall arrangement is a financing transaction, particularly where the funds are used to revive the corporate debtor's operations and the lender receives commercial benefits such as commission or security-like rights until repayment. On this reasoning, such an arrangement can support financial creditor status for a Section 7 application. Case-Laws IBC Wed, 19 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766358