HDFC looks to appeal 99.97% haircut on claims against Zee’s Chandra
HDFC Bank is planning to appeal an NCLT decision that approved a repayment plan for Subhash Chandra, resulting in a 99.97% haircut for creditors. The plan offers only Rs 6.5 crore against claims totaling over Rs 22,000 crore, sparking pushback from several major banks.
Why it matters
This case sets a significant precedent for how personal guarantees are treated in insolvency proceedings and the recovery rights of lenders against high-profile debtors.
MUMBAI: With the National Company Law Tribunal this week clearing a repayment plan offering only Rs. 6.5 crore in a case concerning Zee Group’s Subhash Chandra’s personal guarantees for loans taken by his companies, HDFC Bank said it is exploring an appeal.Creditors filed claims of Rs. 22,006 crore against Subhash Chandra for the loans he backed, but the repayment plan approved by a majority of creditors and cleared by NCLT approves a 99.97% haircut — without impacting lender’s right to recover from the actual borrowers.Assenting creditors (80.8%) contested allegations of being related parties and argued that Rs. 6.5-crore plan offered a better outcome compared to pushing the personal guarantor into bankruptcy, since Chandra’s net worth according to the resolution professional was only Rs. 31.8 crore, of which Rs. 25 crore was his mortgaged house. Chandra has disputed the Rs.
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