Subhash Chandra’s `6.5-cr insolvency plan faces lender challenge

New Delhi: Dissenting lenders have alleged that five entities linked to media baron Subhash Chandra’s family together controlled 61.78 per cent of the voting share and were instrumental in approving his personal insolvency resolution plan, which proposes to pay just Rs 6.5 crore against admitted creditor claims of about Rs 22,006.57 crore.

The lenders contended that the entities were associates or related parties of Chandra and should have been barred from voting. Their votes helped the plan secure 80.814 per cent approval in the committee of creditors (CoC), according to a 144-page National Company Law Tribunal (NCLT) order.

The five entities are Veena Investments, Direct Media Distribution Ventures, World Crest Advisors, Lemonade Capital Advisors and Corpcall Capital Advisors.

Dissenting lenders led by HDFC Bank and IDBI Trusteeship Services, representing Edelweiss and Franklin Templeton funds, argued that the entities fell within the definition of “associates” under the Insolvency and Bankruptcy Code and their votes should not have been counted. HDFC Bank, which has 3.2 per cent of the total claim amount, has said it is considering an appeal, while Canara Bank has stated that it is filing an appeal before the National Company Law Appellate Tribunal.

Canara Bank, Union Bank of India and LIC Housing Finance voted against the repayment plan.