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Securities Legislation - Public Utility Holding Company Act Of 1935 - Extension Of Maturity Date As New "Issue", Edmund O'Hare

Michigan Law Review

Defendant a public utility holding company, wished to obtain a one year extension of the maturity date of its unsecured "5 1/2 % Convertible Investment Certificates" by inducing the holders thereof to assent to such extension in return for a twenty per cent payment of the principal of each certificate. The Securities and Exchange Commission sued to enjoin defendant from using the mails or other instrumentalities of interstate commerce in carrying out its plan, because defendant had not filed a declaration under section 7 of the Public Utilities Holding Company Act of 1935, in connection with the proposed extension. Held …