Subhash Chandra Gets Relief in Personal Guarantee Case as Creditors Face 99% Haircut
· Business · The Hindu, NDTV
Zee Media Group founder Subhash Chandra has secured an NCLT order in New Delhi allowing him to settle personal guarantees worth ₹22,006.57 crore by paying ₹6.5 crore. Creditors holding over 80 percent voting rights approved the repayment plan, forcing dissenting lenders to take a haircut exceeding 99 percent. The third judicial member Nilesh Sharma went ahead with the decision after a split between judicial and technical members. The court left the commercial decision to the Committee of Creditors while ordering the exclusion of certain individual claims submitted through specific representatives. The report does not specify the exact reasons why the majority creditors accepted the heavily discounted settlement.
Why it matters
The ruling forces major financial institutions to absorb multi-billion-rupee losses on personal guarantees under the Insolvency & Bankruptcy Code, setting a high-stakes precedent for high-value debt resolution in India.
Read the original report — The Hindu
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