Subhash Chandra gets relief in personal guarantee case as leading banks face 99% haircut
Subhash Chandra, founder of Zee Media Group, has received NCLT approval to settle a ₹22,006 crore personal guarantee debt by paying only ₹6.5 crore. The decision forces creditors to accept a 99% haircut, sparking controversy over the insolvency process.
Why it matters
This case raises significant questions about the efficacy and fairness of the Insolvency & Bankruptcy Code in protecting creditor interests against high-profile debtors.
In a highly controversial Insolvency & Bankruptcy Code (IBC) outcome, Zee Media Group founder and erstwhile media baron Subhash Chandra has secured an order to settle his personal guarantee worth ₹22,006.57 crore due to creditors by offering to pay only ₹6.5 crore thus making the creditors, which include top banks, to forcibly take more than 99% haircut.
The National Company Law Tribunal (NCLT) New Delhi Bench third judge Nilesh Sharma, who passed the order, went by the decision of 80.814% creditors who had approved Mr. Chandra’s offer, forcing the dissenting creditors to abide by the decision.
Mr. Sharma was appointed as the Third Member as difference of opinion arose between Judicial Member Ashok Kumar Bhardwaj and Technical Member Reena Sinha Puri, in the present matter involving Indiabulls Home Finance and Personal Guarantor Mr. Chandra.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in