Banks challenge Subhash Chandra repayment plan at NCLAT Tuesday 10:30am
Big banks aren't happy with how much money they're getting back from Zee Group founder Subhash Chandra's repayment plan, so they've taken the fight to the National Company Law Appellate Tribunal (NCLAT).
The hearing is set for Tuesday at 10:30am.
Creditors' lawyer Solicitor General Tushar Mehta, appearing for the creditors, says the plan could result in a complete loss of intent and purpose of IBC and doesn't help them recover enough of what they're owed.
Subhash Chandra plan offers 6.5Cr total
Chandra's court-approved plan offers ₹6.5 crore in total: ₹6.25 crore for creditors and ₹25 lakh for insolvency costs, even though only about ₹2,574 crore of the claims relate to loans for which Chandra had given a personal guarantee when the loans were originally taken.
For example, HDFC Bank would expect to recover about 3.2% of its total claim under the plan.
The banks want the terms revised and are waiting on final directions from the court.