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 framing emphasizes the 'controversial' nature of the outcome and the massive loss to creditors, suggesting a critical stance on corporate insolvency practices.
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