Subhash Chandra’s Rs 6.25-Crore Repayment Plan Approved by NCLT
· Business · Indian Express, The Hindu
The NCLT has approved a personal insolvency resolution plan for Zee founder Subhash Chandra, allowing him to settle claims of approximately Rs 22,006.57 crore with a payment of Rs 6.25 crore. Banks, including IDBI Trusteeship Services and HDFC Bank, challenged the approval, alleging that entities holding a majority of the 61.78% vote share in favour of the plan are associates or related parties of Chandra. Under the Insolvency and Bankruptcy Code, once a repayment plan is sanctioned by the tribunal, dissenting creditors are bound by the settlement. Chandra’s office has denied the allegations that the supporting creditors are related parties.
Why it matters
The approval of this settlement highlights significant concerns among creditors regarding the influence of related parties in the insolvency resolution process of personal guarantees.
Read the original report — Indian Express
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