Subhash Chandra: Borrowers to Settle Rs 4,262 Cr Claims
By Business Desk
Zee Group founder Subhash Chandra confirms borrowers will settle Rs 4,262 crore in claims, pending reconciliation. Clarifies personal guarantee details.
Subhash Chandra, the founder of Zee Group, has clarified his personal insolvency proceedings, stating that associated borrowers have committed to settling the outstanding Rs 4,262 crore claimed by lenders. This settlement remains subject to a thorough account reconciliation process.
Chandra emphasized that he personally did not undertake any borrowing, although he had provided personal guarantees amounting to Rs 22,000 crore. This significant sum included funds raised initially and additional guarantees issued after defaults occurred.
Understanding the Personal Guarantee Framework
The total personal guarantees signed by Chandra reached Rs 22,000 crore. This figure was composed of two primary segments.
- An initial fund-raising amount of Rs 17,200 crore.
- An additional Rs 4,800 crore provided subsequent to defaults.
Chandra’s statement aims to address public understanding surrounding the ongoing National Company Law Tribunal (NCLT) settlement. The Resolution Professional’s repayment strategy considered Chandra’s personal assets, which were valued at Rs 31.79 crore, including a residential property under mortgage.
Deconstructing the Lender Claims
A detailed breakdown reveals the complex financial landscape related to these claims. Lenders disbursed certain amounts to borrowers, with a portion already repaid.
- Funds disbursed to borrowers: Rs 4,808 crore
- Amounts repaid: Rs 3,803 crore
- Claims asserted against the personal guarantor: Rs 5,311 crore
- Claims already settled: Rs 1,049 crore
- Remaining outstanding balance: Rs 4,262 crore
Chandra explained that the variance in figures arises because certain accounts were not incorporated into earlier calculations. Many substantial borrowings from various foreign and domestic funds, Non-Banking Financial Companies (NBFCs), and corporates have either been settled or are currently in the process of being settled.
The involved lenders include a diverse group of financial institutions. These entities have varying positions regarding disbursed amounts, repayments, and the presence of valid securities or guarantees.
- India Bulls Housing Finance
- Axis Bank Group
- HDFC Group
- Canara Bank
- Edelweiss
- Franklin Templeton
- IndusInd Bank
- LIC Housing Finance
- RBL Bank
- Union Bank
The commitment from borrowers to settle the remaining amount underscores a critical step in resolving these complex financial obligations. The ongoing account reconciliation will be pivotal in finalizing the outstanding claims.