5 days ago
Subhash Chandra Plans Swiss Startup Investments After Debt Settlement
Subhash Chandra is a businessman who owes creditors a very large amount of money.
A tribunal approved a plan to distribute about ₹6.5 crore to creditors.
The creditors had claimed about ₹22,006.57 crore.
This means they may receive only a tiny part of what they claimed.
Some lenders objected and may appeal the decision.
Chandra said he has a rented house helping pay his living expenses.
He plans to work with investment professionals in Switzerland.
He may also borrow money from family to invest in startups and start new businesses.
The NCLT approved a repayment plan covering ₹22,006.57 crore in admitted claims.
The plan provides approximately ₹6.5 crore for distribution to creditors.
Creditors would recover about 0.03% of their claims, a nearly 99.97% haircut.
Subhash Chandra said he may borrow ₹2-4 crore from family to invest in startups.
Union Bank of India plans to challenge the repayment plan before the NCLAT.
- Who
- Essel Group Chairman Subhash Chandra, his creditors, and lenders including Union Bank of India and HDFC Bank.
- What
- The NCLT approved a repayment plan providing approximately ₹6.5 crore against admitted claims of ₹22,006.57 crore.
- Where
- The insolvency proceedings are before India's NCLT; Chandra said his planned investment work would involve Switzerland.
- When
- The approval came days before Chandra made his video statement; he said he would provide details of his Switzerland plans within one to two weeks.
- Why
- The plan addresses Chandra's personal insolvency claims, while he says he wants to resume business and invest in startups.
Tribunal and Plan Supporters
Objecting Lenders
Repayment proposal
Tribunal and Plan Supporters
The NCLT approved the proposal after considering Chandra's assets and finding their value considerably lower than creditor claims. Creditors holding more than 80% of the voting share supported it.
Objecting Lenders
Lenders including Union Bank of India and HDFC Bank objected to the nearly 99.97% haircut and questioned the very limited recovery.
Next legal step
Tribunal and Plan Supporters
The approved plan provides a framework for resolving the insolvency claims, with the case returning to the original division bench for a formal order.
Objecting Lenders
Union Bank of India said it would challenge the approval before the National Company Law Appellate Tribunal.
Key facts
- Admitted creditor claims
- Approximately ₹22,006.57 crore
- Amount for distribution
- Approximately ₹6.5 crore
- Estimated recovery
- About 0.03%, or roughly three paise per ₹100 claimed
- Estimated creditor haircut
- Nearly 99.97%
- Potential family loan
- ₹2-4 crore
- Planned investment location
- Switzerland, with possible startup investments
- Creditor support
- Creditors holding more than 80% of the voting share backed the plan
- Planned challenge
- Union Bank of India said it would appeal before the NCLAT
Quotes
Subhash Chandra
Essel Group chairman and media businessman
“Right now, I have a plan to work with my friends in Switzerland who do investment work. I will give you the details in the next 1-2 weeks. Might also take a loan of Rs 2-4 crore from family and invest it in some of our start-ups that can move forward,”
NDTV
“Today I'm talking in a very simple way. I am not talking about a person who has lost everything. The last ₹6.5 crore I have left with will have to pay according to the plan.”
livemint.com
Sources
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