Restructuring Schemes | Nuanced Discussion Of Key Issues

Introduction

Several group companies are increasingly thinking 'mergers or demergers', blessed by the Court, now to be by the National Company Law Tribunal (NCLT), (Restructuring) as the most effective way to unlock shareholder value, to create companies operating in niche sectors that would draw private equity players (via demergers) or to consolidate value and create a larger, effective combined entity and achieve economies of scale (via mergers). With Restructuring being the name of the game, it is imperative for an M&A corporate lawyer to be conscious of a few legal and regulatory issues. This article attempts to provide a nuanced understanding of some such issues relevant, prior to commencement of the NCLT processes.