Subhash Chandra insolvency: Why are creditors set to recover only ₹6.5 crore against ₹22,006 crore claims?
The case concerns proceedings by Indiabulls Housing Finance over a ₹170-crore loan given to Vivek Infracon Private Limited, for which Mr. Chandra had provided a personal guarantee
The National Company Law Tribunal (NCLT) has approved a repayment plan for Essel Group founder Subhash Chandra under the Insolvency and Bankruptcy Code, 2016 (IBC). The plan allows for a recovery of only ₹6.25 crore against the admitted claims of ₹22,006.57 crore, resulting in a near 100% loss for creditors. The case concerns Mr. Chandra's personal guarantee for loans given to Vivek Infracon Private Limited, and not the corporate entity of Essel Group.
While the majority of creditors oppose the plan, Mr. Chandra's office has clarified that he has not personally borrowed any money. The distinct legal nature of a personal guarantor versus a corporate entity has been emphasized by legal experts to highlight the separate insolvency proceedings applicable to both.
Brief written by urgent.news from The Hindu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
