What 'Haircut' Means in Insolvency and How It Applies to Chandra's Rs 22,000-Cr Case
Creditors say the approved plan would return only a fraction of about Rs 22,006.57 crore in claims and question related-party lenders.
10 Articles
10 Articles
Zee Entertainment shares crash 14% amid Subhash Chandra’s 99.97% loan haircut row
Zee Entertainment shares crashed on Monday after the NCLT approved a repayment plan involving founder Subhash Chandra. The plan entails a recovery of around Rs 6.5 crore against admitted creditor claims of Rs 22,006.57 crore, implying a 99.97% haircut.
NCLAT to hear creditors' plea challenging Subhash Chandra’s repayment plan
NCLAT will hear creditors’ challenge to Subhash Chandra’s ₹6.5 crore repayment plan after several lenders opposed the proposal, arguing it could undermine the intent and purpose of the insolvency law.
What 'haircut' means in insolvency and how it applies to Chandra's Rs 22,000-cr case
The NCLT has approved Subhash Chandra's personal insolvency repayment plan against admitted claims of Rs 22,006.57 crore. The case has sharpened scrutiny of how haircuts are calculated, who bears them and what personal guarantees actually cover.
Shares of Zee Entertainment fell sharply by over 14 percent on the BSE on Monday. The NCLT order on the repayment plan has been challenged by three major banks, leading to panic selling in the market.
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