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NCLT plan leaves Subhash Chandra creditors Rs 6.5 crore
Livemint··29 Aug
NCLT approved a plan letting Subhash Chandra pay Rs 6.5 crore against claims of Rs 22,006.57 crore. That is three paise per Rs 100, a 99.97 percent haircut. Essel Group's chairman said he may borrow Rs 2-4 crore from family for start-ups. He said Rs 6.5 crore left would fund the plan. Union Bank said it will approach the NCLAT.
Prism
What It Means For You
- Creditors under the approved plan stand to recover Rs 6.5 crore on claims of Rs 22,006.57 crore.
- Union Bank and HDFC Bank have signalled appellate challenges, so recoveries may stay contested.
- Chandra said living costs now come from rent on a small residential house.
What's Happening
- Chandra said he plans to work with friends in Switzerland on investments and will share details in 1-2 weeks.
- The repayment plan had backing from creditors holding more than 80 percent of the voting share.
- The insolvency case began after a Rs 170-crore Vivek Infracon loan on Chandra's personal guarantee turned bad.
How the Insolvency Case Began
- Indiabulls Housing Finance started proceedings in 2022 after the guaranteed loan defaulted.
- The NCLT admitted the case in April 2024.
- Chandra said he had contributed at least Rs 70,000 crore to the financial system over more than 50 years of work.
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