Raytheon moves court opposing demerger of JSW Energy
US multinational Raytheon has moved the Bombay High Court opposing the proposed de-merger of Jindal Steel Works Energy (JSW Energy) with its subsidiary JSW Energy Investment.
By PTI |
MUMBAI: US multinational Raytheon has moved the Bombay High Court opposing the proposed de-merger of Jindal Steel Works Energy (JSW Energy) with its subsidiary JSW Energy Investment.
Raytheon, an unsecured creditor, challenged the de-merger on the ground that JSW Energy did not convene the statutory meeting of creditors as required under the Companies Act.
"We have filed objections on behalf of our client Raytheon Ebasco Overseas Ltd (REOL) in Bombay High Court. The case will come up for hearing on July 19," Diljeet Titus, senior partner of corporate law firm Titus and Co, Advocates, said.
Raytheon told the Bombay High Court that JSW Energy did not obtain the consent of two-third of its creditors, including the US company, before submitting the de-merger scheme to it for approval.
JSW Energy, however, in its application to the Court has claimed "all the stakeholders of the petitioner company have approved the said scheme of arrangement of demerger of the investment division of the petitioner company and as far as unsecured creditors of the petitioner company are concerned, individual notices were sent to the unsecured creditors."
According to the scheme of arrangement filed by JSW Energy, after demerger the company's net worth would go up to Rs 535 crore.
Raytheon, an unsecured creditor, challenged the de-merger on the ground that JSW Energy did not convene the statutory meeting of creditors as required under the Companies Act.
"We have filed objections on behalf of our client Raytheon Ebasco Overseas Ltd (REOL) in Bombay High Court. The case will come up for hearing on July 19," Diljeet Titus, senior partner of corporate law firm Titus and Co, Advocates, said.
Raytheon told the Bombay High Court that JSW Energy did not obtain the consent of two-third of its creditors, including the US company, before submitting the de-merger scheme to it for approval.
JSW Energy, however, in its application to the Court has claimed "all the stakeholders of the petitioner company have approved the said scheme of arrangement of demerger of the investment division of the petitioner company and as far as unsecured creditors of the petitioner company are concerned, individual notices were sent to the unsecured creditors."
According to the scheme of arrangement filed by JSW Energy, after demerger the company's net worth would go up to Rs 535 crore.
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