Canara Bank and Union Bank of India will challenge National Company Law Tribunal’s approval of Zee group founder Subhash Chandra’s repayment plan, under which creditors would recover 0.03% of their admitted claims relating to his liabilities as a personal guarantor, arguing that the plan was approved despite opposition from public-sector creditors.
The insolvency proceedings against Chandra were initiated by Indiabulls Housing Finance. Canara Bank and Union Bank of India opposed the repayment plan. LIC Housing also voted against it. HDFC Bank also confirmed that it plans to appeal the order before the National Company Law Appellate Tribunal. However, the plan got the support of private creditors (with 80.8% voting share) and was cleared by the NCLT.
The total admitted claims stood at Rs. 22,006 crore, of which Rs. 6.50 crore was proposed to be paid. This amounts to 99.9% haircut, with creditors recovering about 0.03% of their admitted claims.
Meanwhile, Subhash Chandra has disputed the Rs. 22,006-crore liability, saying that it reflected historical claims filed in 2022. He also said, the claims by creditors were also being addressed by the principal borrowers. He explained that he was only a personal guarantor and had not himself borrowed the money.
