Goa, Aug. 27 -- In a major development in personal insolvency resolution proceedings, the National Company Law Tribunal (NCLT) has approved a repayment plan submitted by Essel Group founder Subhash Chandra. Under the tribunal-sanctioned plan, Chandra will pay Rs.6.5 crore to resolve admitted creditor claims totaling Rs.22,006.57 crore. The arrangement results in a recovery rate of approximately 0.03% for lenders, translating to a steep 99.97% haircut on the outstanding dues.

The personal insolvency proceedings stem from Chandra's role as a personal guarantor for debts incurred by various Essel Group entities, including Zee Entertainment. The approved scheme was rendered under Section 114 of the Insolvency and Bankruptcy Code (IBC).

The ...