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, defendant should be so enjoined, on the ground that such extension was an issue or sale of securities within the meaning of section 6 (a) (1) of the act. Securities and Exchange Commission v. Associated Gas & Electric Co., (C. C. A. 2d, 1938) 99 F. (2d) 795.
SECURITIES LEGISLATION - PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 - EXTENSION OF MATURITY DATE AS NEW "ISSUE",
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol37/iss7/25