HDFC Plans to Challenge 99.97% Haircut on Claims Involving Zee’s Chandra
MUMBAI: The National Company Law Tribunal (NCLT) has approved a repayment plan for Subhash Chandra, the chairman of Zee Group, which offers creditors only Rs 6.5 crore against claims totaling Rs 22,006 crore. HDFC Bank has announced it is considering an appeal against this decision. The approved plan, which represents a 99.97% haircut, does not affect the lenders’ rights to recover from the actual borrowers.
Chandra’s net worth is reported to be Rs 31.8 crore, with Rs 25 crore tied up in a mortgaged property. He has disputed the total liability, claiming it reflects historical claims from 2022. Creditors who supported the plan, accounting for 80.8% of the votes, argued that the Rs 6.5 crore offer was preferable to pushing Chandra into bankruptcy.
Claims and Controversies
Chandra has contested the claims of objecting creditors, which he estimates at Rs 3,992 crore, with Rs 620 crore already settled. He stated that he only acted as a personal guarantor and did not borrow funds himself. Most guarantees were provided after group companies defaulted, with lenders appealing for support to protect jobs.
Dissenting creditors, including HDFC, Axis Bank, and Canara Bank, represent about 15% of the claims. They argue that the settlement does not absolve the principal borrowers, who remain liable. The claims stem from Chandra’s guarantees for loans taken by various companies, including Vivek Infracon and Spirit Textiles.
Allegations of Related Parties
The dissenting lenders have raised concerns about thHDFC Plans to Challenge 99.97% Haircut on Claims Involving Zee’s Chandrae voting rights of assenting creditors, alleging that many are related or associate entities. They claim these creditors control a significant portion of the voting rights, making them ineligible under the Insolvency and Bankruptcy Code. The controversy has drawn public attention, with political figures commenting on the implications of the NCLT’s decision.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
