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Zee Entertainment Shares Crash 14% Amid Subhash Chandra’s 99.97% Loan Haircut Row
Creditors say the Rs 6.5 crore plan is far too small against about Rs 22,000 crore in claims and question lenders’ earlier valuation of Chandra’s guarantees.
- Last week, the National Company Law Tribunal approved a repayment plan of Rs 6.50 crore by Subhash Chandra, founder of one of India's largest media groups, to his creditors.
- Chandra appeared before the insolvency tribunal as a personal guarantor for Essel group companies, many of which have faced insolvency proceedings themselves.
- Creditors alleged Chandra's wealth at Rs 40,000 crore based on a 2018 net-worth certificate supplied to Canara Bank, while total claims against the guarantor amount to Rs 22,000 crore.
- Crucially, approval of the repayment plan does not extinguish liabilities of principal borrowers, and the headline "99.97 per cent haircut" does not indicate actual creditor recovery.
- Haircuts are a feature of the Insolvency and Bankruptcy Code , as recognizing losses today is healthier than carrying fictitious assets for another five years.
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11 Articles
11 Articles
Zee Entertainment shares crash 14% amid Subhash Chandra’s 99.97% loan haircut row
Zee Entertainment shares crashed on Monday after the NCLT approved a repayment plan involving founder Subhash Chandra. The plan entails a recovery of around Rs 6.5 crore against admitted creditor claims of Rs 22,006.57 crore, implying a 99.97% haircut.
·India
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NCLAT to hear creditors' plea challenging Subhash Chandra’s repayment plan
NCLAT will hear creditors’ challenge to Subhash Chandra’s ₹6.5 crore repayment plan after several lenders opposed the proposal, arguing it could undermine the intent and purpose of the insolvency law.
·New Delhi, India
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What 'haircut' means in insolvency and how it applies to Chandra's Rs 22,000-cr case
The NCLT has approved Subhash Chandra's personal insolvency repayment plan against admitted claims of Rs 22,006.57 crore. The case has sharpened scrutiny of how haircuts are calculated, who bears them and what personal guarantees actually cover.
·Noida, India
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Total News Sources11
Leaning Left0Leaning Right5Center1Last UpdatedBias Distribution83% Right
Bias Distribution
- 83% of the sources lean Right
83% Right
C 17%
R 83%
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