Creditors oppose Subhash Chandra's repayment plan before NCLT

New Delhi: Creditors have raised objections against the repayment plan proposed by Zee Entertainment Enterprises (ZEEL) founder Subhash Chandra before the National Company Law Tribunal (NCLT). 

As per the news reports, advocates representing major creditors like HDFC Bank, IDBI Trusteeship, LIC Housing, and IndusInd Bank have expressed their dissatisfaction in court, highlighting that the amounts proposed to be repaid are merely in "lakhs" while their outstanding claims run into "hundreds of crores."

"In 2017, Subhash Chandra's worth was in thousands of crores; today they say it is only Rs 31 crore," argued Senior Advocate Abhinav Vashisht, representing one of the objecting creditors. 

Adding to their concerns are allegations that the committee of creditors is largely composed of Chandra's proxies, potentially influencing the plan's favorability.

Chandra, the founder of Zee Entertainment Enterprises (ZEEL), is currently facing insolvency proceedings initiated by Indiabulls Housing Finance. The proceedings stem from Chandra's role as a personal guarantor for a loan taken by Essel Group company, Vivek Infracon, which defaulted on a payment of approximately Rs 170 crore.

However, not all creditors oppose the plan. Some, including Corpcall Capital Advisors and Direct Media Distribution Ventures, have shown support, creating a divide among the creditors. This mixed reception has set the stage for further hearings, with the NCLT expected to adjudicate on the objections in April.