In multiple schemes or chain mergers, several mergers and demergers involving different companies take place in furtherance of a common corporate restructuring scheme. Each of these mergers or demergers contributes towards the overall objectives of the said grand scheme of corporate re alignment. Further, for expedition and timeliness these are pursued all at a time instead of one after another.
Here there is restructuring of a group of companies, all with the same appointed date but at different centers. Here merger and demerger go hand in hand with the demerged division separating from the parent company and joining into another company with the same appointed date.
There are group of companies, which have diversified into unrelated business areas far away from their core competencies. In multiple schemes, demerger hives off unrelated business division from the parent company to a matching company in its similar business line. The said parent company in turn acquires other companies or divisions engaged in related business areas through connected mergers. Thus under the overall master plan, while unrelated businesses are segregated, related enterprises are realigned under one umbrella or roof.
Accordingly separate applications are made to the concerned High Courts in respect of each of the schemes for the respective companies simultaneously. Separate meetings in pursuance thereof are also held of the concerned creditors and members of each of the companies for considering the respective schemes.
There are instances of different parts of the same scheme being approved by different High Courts.
