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Typically no, unless this is agreed upon between the debt holder and the issuing institution. The exception to this is callable debt, which allows the issuing corporation to pay off the debt within a certain window, specified by the terms of the issuance.
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∙ 14y ago
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Why maturing debenture may cause problems for the company?
Ideally speaking it is not a problem for the company. All they have to do is, to pay back the investors who bought the Debentures at the time of issue. It can be a problem if the company does not have enough finances to pay off the investors whose Debentures are maturing.
Which Indian companies have recently issued debentures?
recently which industry/company had issued its debentures
Which Indian companies recently issued debentures?
recently which industry/company had issued its debentures
What is redemption of debentures using purchase of own debenture?
A company can buy its own debenture in the open market, if it is authorised by its AOA. the debentures so purchased can be used either for immediate cancellation or redemption of debenture or for investment. the debenture so purchase for investment can be subsequently either be issued to fullfill additional requirements of cash or can be cancelled if the company so desires. debentures when purchases for investment are popularly known as 'OWN DEBENTURES.'
Can public company issue debentures?
Yes
Can private company issue debentures?
YES!
Is debentures in balance sheet?
Yes,debenture in the balance sheet because debentures is liability for the company so it comes debit side in balance sheet in the books of the company.
Why debentures are considered very secure?
Debentures are credit instruments. Companies have to pay fixed interest to the debentures holders even though the company is running on loss. An the time of liquidation also the company have to repay the amount to debenture holders before paying it to share holders.
What does OFCD stand for?
OFCD - optionally fully convertible debentures. these are the debentures that can be converted into equity at any time at the rate of interest decided by the company
Is debentures of weirds limited secure?
weird not a frod company and nbsc company.fully industrial company.
Define redemption of debentures out of capital?
When debentures are redeemed out of capital, no transfer is made to general reserve or debenture redemption reserve account. In this method it is assumed that the company has sufficient funds to redeem the debentures. So the profits are not utilised to replace the debentures.It affects adversely to the Working Capital of the company.
Can company issue debenture with pari passu clause?
YES, a company can issue its debentures with a pari passu clause when they are issued in series. This implies that the debentures shall be paid proportionately. This assumes an added advantage when the company is short of cash & does not have the amount to make payment for debentures.In such case, all the debentures held by a creditor of the company ranked equal as regard charge and repayment with the others of that series. However, a company cannot give this right tto its new debentureholder of its old debentures unless it is expressly authorised to do so.
