"Indian Debt Resolution": Vijay Mallya On Subhash Chandra's 99.97% Debt Haircut
The NCLT has approved a debt resolution plan for Zee Group founder Subhash Chandra, allowing him to settle over Rs 22,000 crore in claims with a payment of just Rs 6.5 crore. Fugitive businessman Vijay Mallya criticized the decision, highlighting the disparity between this settlement and his own ongoing legal battles regarding Kingfisher Airlines.
Why it matters
The case has sparked significant controversy regarding the efficacy and fairness of India's Insolvency and Bankruptcy Code, raising concerns about how large-scale corporate debt is handled by the judiciary.
Fugitive businessman Vijay Mallaya sent in his mock "congratulations" after the National Company Law Tribunal, or NCLT, cleared a repayment plan that grants Zee Group founder Subhash Chandra to pay just Rs 6.5 crore to settle admitted creditor claims of about Rs 22,006.57 crore, translating into a haircut of nearly 99.97 per cent for lenders.In finance terminology, when creditors are owed money and the debtor repays only part of it, the difference expressed as a percentage is called a haircut.The decision has put the spotlight on one of the most striking personal insolvency cases involving the media baron."If True many congratulations to my friend Subhash. Banks and Government have admitted having recovered Rs 14,100 crores from me against a Judgement debt of Rs 6203 crores. Many more borrowers have settled at a fraction. Indian Debt Resolution Justice I presume.
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