The other day we were discussing about the Baltimore Sinclair company and how they managed to own to stations which were not allowed but they managed to do by making one of his employers as the registered owner. This registered owner was just on the papers but basically it was still owned by the Sinclair group.
I know a similar kind of case which I wanted to put some light on.
There was a law that one company could not acquire or merge other if both are running successfully because of the competency law which helps maintaining the competition in the market.
There was a company (Named A) in India owned by one of my uncle which was doing really well. He wanted to come up with another company and they were legally not allowed to open another same type of company if it was running successfully due to the law and restriction. The director of the company A came up with a pretty much same idea which was adopted by Sinclair.
He opened a new unit B on the name of one of his employees. Later the new company started taking lot of operational loan from company A and never paid back in papers to company A, though both are owned technically by a same person so it did not make difference really but financial papers.
Slowly the debt piled up in the balance sheet for company B and this was all done purposely. Later the new company B had to declare bankrupt due to debt and was unable to pay the loan back to company A, and the original company A was allowed to legally take over the bankrupt company as they owe a lot of money to that firm and he was made the owner of the both the firms legally.
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