Zee Founder Chandra Says Rs 4,262 Crore Loan Dues To Be Settled After Reconciliation
Chandra says borrowers assured settlement after reconciliation; lenders move to challenge Rs 6.5-crore plan.
Mumbai: Zee Group founder and chairman Subhash Chandra on Sunday issued a fresh statement providing details on the settlement order in his
personal insolvency proceedings before the National Company Law Tribunal (NCLT). He also announced an Instagram Live on Monday, August 31, from 9 am onwards, where he will directly address the recent NCLT proceedings and his personal insolvency case.
The case refers to the NCLT order approving a repayment plan for Zee group founder under which creditors will receive a total of just Rs 6.5 crore against admitted claims of Rs 22,006.57 crore. The plan translates into a recovery of only about 0.03 per cent of the admitted claims and a haircut of around 99.97 per cent for creditors.
According to Chandra’s statement, the total amount disbursed by the lenders listed in the proceedings was approximately Rs 4,808 crore.
Borrowers had repaid Rs 3,803 crore, leaving an outstanding balance of about Rs 998 crore. However, claims filed against the personal guarantor amounted to Rs 5,311 crore.
Following the settlement or payment of claims amounting to Rs 1,049 crore, the remaining claims stood at Rs 4,262 crore, the statement said.
Chandra maintained that the difference between the amount described as payable and the claims submitted by lenders would need to be reconciled between the lenders and the respective borrowing entities.
He further said he had discussed the matter with the borrowers and had received assurances that the remaining Rs 4,262 crore would be settled after reconciliation with the lenders.
Meanwhile, public sector banks- Union Bank of India (UK) Ltd, Canara Bank, LIC Housing Finance and HDFC Ltd will be challenging the NCLT order that had accepted Chandra’s repayment offer of Rs 6.5 crore to clear personal guarantee liabilities amounting to creditors’ claims of Rs 22,006 crore in National COmpany Law Tribunal (NCLAT). Private lender HDFC Bank is also exploring filing an appeal at the NCLAT.
The three lenders, which together held an 8.45 per cent voting share in the insolvency proceedings, had opposed and voted against the repayment proposal.
The lenders said that the repayment plans was approved after other financial creditors, collectively holding an 80.81 per cent voting
share, voted in its favour. They questioned the participation of several entities in the voting process, alleging that they were associates or related entities of Chandra and that their votes should therefore have been excluded.
The objectors specifically questioned the votes of Veena Investments Pvt Ltd, Direct Media Distribution Ventures Pvt Ltd, World Crest Advisors LLP, Lemonade Capital Advisors LLP and Corpcall Capital Advisors LLP.
The NCLT’s judicial member Nilesh Sharma, however, held that the disputed entities had not been shown to satisfy the statutory definition of an 'associate' under Section 79(2)(g) of the IBC. Their votes, therefore, could not be excluded merely on the basis of allegations about their relationship with Chandra.
Canara Bank also sought a forensic audit during the proceedings.
However, its request could not secure approval because of its minority voting share.
