Debenture Trustee -DSJ Finance (In Liquidation)

To All the existing Debenture Holders of DSJ Finance Corporation Ltd (in Liquidation) in respect of 12,639 and 1080-20% Secured Redeemable NCD of Rs.5000/- each aggregating to Rs 6,85,95,000/- and 1894 & 105-19% Secured Redeemable NCD of Rs.5000/- each aggregating to Rs.99,95,000/- in the year 1996.

Dear Sirs/Madams,

Distribution of part of sale proceeds towards Part Redemption of Debentures issued by DSJ Finance Corporation Limited ( In Liquidation) (“the Company”)

ICICI Bank Ltd. is acting in its capacity as a Debenture Trustee (hereinafter referred to as “DT”) of DSJ Finance Corporation Ltd (in Liquidation) in respect of 12,639 and 1080-20% Secured Redeemable NCD of Rs.5000/- each aggregating to Rs 6,85,95,000/- and 1894 & 105-19% Secured Redeemable NCD of Rs.5000/- each aggregating to Rs.99,95,000/-.

The Company has committed default in payment of interest and principal amount and failed to redeem the debentures issued by it .The DT had filed a Suit before the Hon'ble Bombay High Court (being Suit No. 5237 of 1998) for enforcement of security interest and recovery of the amounts due on the said debentures. During the pendency of the said Suit, and in pursuance to the direction of the Hon'ble Bombay Court, the Court Receiver (hereinafter referred to as the ‘CR”), was appointed to take possession of the assets of the Company. The mortgaged property situated at Bangalore was sold by the CR for Rs. 5.5 Crores and the sale proceeds were deposited with the Hon'ble Bombay High Court under custody of the CR which was further invested by the CR in various fixed deposits.

The DT filed an application for withdrawal of the said amount, and by order dated March 23, 2009, the Hon'ble Bombay High Court was pleased to allow the withdrawal of the said amount of Rs. 5.5 Crores with Interest accrued there upon on the conditions that (i) an amount of Rs. 25 Lacs shall be set aside towards the workers dues and (ii) the DT shall file an undertaking to the effect that they shall bring back the money so withdrawn as and when directed by the Hon'ble Court.

On receipt of the said amounts and after adjustments of the security and other expenses, DT would be in a position to disburse 60 % of Principal amount due to the debenture holder on their respective investments.

The DT has appointed M/s GDA Trustees and Consultancy Ltd (Hereinafter referred to as GDA) as its authorised agent for processing and disbursal of amounts to the debenture holders on behalf of the DT. The disbursal of the amounts will be made on the following terms and conditions, please click here