Promoters & Majority Shareholders of Tikona Infinet Private Limited have announced that they have entered into a definitive settlement agreement with L&T Finance Limited on May 10,2025, bringing closure to a previously reported shareholder matter related to Series ‘E’ Compulsorily Convertible Debentures (CCDs).
The announcement comes after the National Company Law Tribunal (NCLT), Mumbai Bench, earlier admitted an application filed by L&T Finance against Tikona Infinet, citing default on coupon payments for CCDs. The tribunal had observed that even though certain CCDs are structured for conversion into equity, they may still be considered financial debt if the coupon payment obligation is absolute.
Tikona Infinet had maintained in its legal filings that the instruments in question were classified as equity security and did not qualify as financial debt under the Insolvency and Bankruptcy Code. The company further argued that the alleged coupon entitlements were subject to availability of distributable cash and were in the nature of dividends, not debt.
Following internal discussions among all relevant parties and stakeholders, both sides have reached a mutually agreeable settlement. The process for formal withdrawal of the insolvency petition from the NCLT is currently underway.
Mr. Prakash Bajpai, Founder & CEO of Tikona Infinet, said: “It was a dispute amongst the shareholders about Coupon Rights. I am glad to inform that a settlement agreement has been executed already which will settle all disputes amicably between LTF Limited and other majority shareholders. A withdrawal application to NCLT is under process.”
Tikona Infinet remains focused on delivering superior broadband services to its customers across India and continues to strengthen its operations and shareholder relationships, and maintains its position as a debt-free company.