What are the secured rights of NCD holders ?
These are the rights of NCD holders, whether secured or unsecured:
- NCD holders can sue the company to recover principal and interest.
- They may also file a request for compulsory dissolution.
- If the company closes down, NCD holders will be eligible for principal repayment.
Secured NCD Holders:
- Investors have the option to file a suit for compulsory dissolution via the DT (Debenture trustee).
- They may also file suit to sell the company's property.
- NCD holders have the right to restrict their company and prevent the sale of property.
- If the trustee is allowed, investors may also appoint a liquidator to collect the repayment charge.
- The holder may sue the company for any balance payments if the company's charged assets are less than the full amount.