Zee Entertainment shares crash 14% amid Subhash Chandra’s 99.97% loan haircut row
Zee Entertainment shares dropped 14% following an NCLT order that approved a 99.97% debt haircut for founder Subhash Chandra. The ruling relates to Chandra's personal insolvency as a guarantor for Essel Group debts, sparking significant market concern.
Why it matters
The massive debt write-off highlights risks in corporate governance and personal insolvency processes in India, impacting investor confidence in Zee Entertainment.
Shares of Zee Entertainment Enterprises crashed over 14% on Monday, extending a 17% fall in four sessions after the NCLT approved a 99.97% haircut on founder Subhash Chandra’s creditor claims.Zee shares crashed to Rs 86.90 apiece on NSE on Monday, the lowest level seen by the stock since May this year. The stock is on track to record the sharpest single-day plunge in nearly a month.This comes after Canara Bank, Union Bank of India and LIC Housing Finance on Saturday said they will challenge the National Company Law Tribunal's (NCLT) order approving a repayment plan proposed by Essel Group founder Subhash Chandra.NCLT's approval of a repayment plan under which Essel Group chairman Subhash Chandra will pay around Rs 6.5 crore against admitted creditor claims of Rs 22,006.57 crore has sparked a debate over the 99.97% haircut.The case, however, does not involve a resolution of corporate borrowings by Essel Group companies,…
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