Imagine a situation where a promoter of a company makes huge capital investments to revive it, but fails to ensure any tangible or durable improvements in its performance. What options does a promoter have under such circumstances? Either the company could be restructured financially with the promoter taking a haircut and banks agreeing to a debt recovery settlement or it simply could be closed down. A third option would be to sell the company to a buyer before its losses become so huge that it no longer remains saleable.
All these options, however, seem to be irrelevant when the promoter in
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