The word “haircut” has suddenly become central to the debate around Essel Group chairman Subhash Chandra’s personal insolvency case.
The National Company Law Tribunal (NCLT) has approved a repayment plan under which Chandra is to pay around Rs 6.25 crore against admitted claims of about Rs 22,006.57 crore. On a simple comparison of the two figures, creditors would recover only around 0.03% of the admitted claims, implying a haircut of roughly 99.97%.
That number has drawn criticism from lenders and sparked questions over how such a large gap between claims and recovery can arise.
But Chandra has disputed the way the Rs 22,000-crore figure is being presented. In his latest clarification, he said he had not personally borrowed Rs 22,000…