Subhash Chandra: proposed 99.972% haircut, now stayed
Claims: ₹22,006.57 crore | Proposed creditor payment: ₹6.25 crore
Subhash Chandra’s case concerns his personal guarantees for loans taken by Essel Group companies, not the insolvency of a corporate borrower.
His repayment plan proposed ₹6.25 crore for creditors and ₹25 lakh towards insolvency-process costs. The creditor payout amounted to a recovery of about 0.028% and a proposed haircut of approximately 99.972%.
The plan secured 80.81% of the creditors’ vote. However, the original two-member NCLT Bench delivered differing opinions. Judicial Member Ashok Kumar Bhardwaj favoured approval only for assenting creditors, while Technical Member Reena Sinha Puri rejected the plan….