2006 (1) TMI 250

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.... High Court, the paid-up equity capital be reduced by 10 per cent in a manner that the face/nominal value of equity share shall remain at Rs. 10 each, but the number of paid-up equity shares shall be reduced from the existing 6,34,81,246 No. to 5,71,33,121 No. of Rs. 10 each and, accordingly, the number of shares held by each shareholder shall stand reduced by 10 per cent. 4. The petitioner states that on account of cash losses suffered by it due to various reasons and its inability to service its debts, it had approached the financial institutions and banks (joint lenders), for restructuring their debts under the corporate debt restructuring mechanism. The restructuring has been approved by the joint lenders, vide CDR Cell approval letter....

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....dated 1-12-2005, as follows : "The queries raised by the court, namely, whether the creditors whose interest liability is to be reduced, have approved the implementation of the debt, and the reasons as to why the increase of promoter's stake has been made a condition precedent to the restricting package, have been satisfactorily explained in paragraphs 3 and 4 of the supplementary affidavit of Shri Rakesh Mundra. It is contended that except UTI and PICUPEFS/ECS which have an exposure of Rs. 418.37 lakhs out of total of Rs. 11,299.20 lakhs which comes to only 3.70 per cent, and which are not covered by CDR package the CDR package has been accepted by all other secured creditors. The approval given by the CDR member have been annexed to the....

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....The petitioner has filed affidavit dated 8-1-2006 annexing copies of all the aforesaid editions of the two newspapers in proof of due publication of notices of the petition. The citation has been published in Times of India published from Bombay, Delhi and Lucknow on 13-12-2005 and Amar Ujala published from Delhi and Kanpur on 20-12-2005. 9. No one has filed any objections to the proposed reduction of capital. 10. After hearing the learned counsel and upon perusal of the record, the court is satisfied that the proposed reduction of capital of petitioner company deserves to be confirmed. Accordingly, the reduction of issued and paid-up equity share capital of the petitioner company, as approved by the shareholders vide special resolution p....