Oppose wind-up, MCC Fin depositors told

DEPOSIT holders in MCC Finance may want to note this.

The Secretary, Department of Company Affairs, Mr. P. L. Sanjeeva Reddy, has advised depositors in the troubled company to move court against a possible wind-up of the company.

It may be recalled that the Reserve Bank of India, the regulator for non-banking finance companies, such as MCC Finance, has filed a winding-up petition against the company in the Madras High Court.

In the event that its petition is upheld, then depositors in the fixed deposit scheme of the company, who are essentially unsecured creditors, would lose out in priority for repayment to the secured creditors.

Mr. Reddy has, therefore, advised the depositors of the company to implead themselves in the case filed by the Reserve Bank and oppose winding-up of the company as it would be against their interests.