HDFC looks to appeal 99.97% haircut on claims against Zee’s Chandra
Assenting creditors (80.8%) contested allegations of being related parties and argued that Rs. 6.5-crore plan offered a better outcome compared to pushing the personal guarantor into bankruptcy, since Chandra’s net worth according to the resolution professional was only Rs. 31.8 crore, of which Rs. 25 crore was his mortgaged house. Chandra has disputed the Rs. 22,000-crore liability, stating it…
Mumbai: HDFC Bank is considering an appeal following a decision by the National Company Law Tribunal that grants a substantial 99.97% haircut on claims against Subhash Chandra, a member of the Zee Group. Creditors have filed claims totaling Rs. 22,006 crore against Chandra for the loans he has guaranteed for his companies, but the repayment plan approved by a majority of creditors and approved by the tribunal offers only Rs.
6.5 crore. This decision, despite objections from 80.8% of creditors, raises concerns about the fairness of the outcome. Chandra, who has disputed the Rs. 22,000 crore liability, claims that he was only a personal guarantor and did not borrow any funds himself. The creditors, however, maintain that he is still responsible for a significant portion of the debt, and the remaining Rs. 16,201 crore is being addressed by the principal borrowers.
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