New Delhi, Oct. 8 -- Four companies which had taken loans from LIC Housing Finance Ltd backed by personal guarantee of businessman Dr Subhash Chandra have proposed to repay the outstanding loan amount along with payment of 10 per cent interest on the face value, sources said.
The proposal pertains to loans of around Rs 980 crore. As per sources, Vasant Sagar Properties Ltd and Pan India Infraprojects Pvt Ltd had taken loans amounting to around Rs 500 crore while Digital Subscriber Management and Consultancy Services Pvt Ltd and Sprit Infrapower Project had borrowed around Rs 480 crore from LIC Housing Finance.
Sources said the four companies have submitted proposals with the lender to settle the entire amount on the face value of the loan with 10 per cent interest. The proposals are believed to be under consideration and not confirmed by LIC Housing Finance as yet.
The move comes amidst insolvency proceedings against Chandra as personal guarantor. While the overall claims in the proceedings have been reported at nearly Rs 22,000 crore, this must not be misconstrued as money borrowed by him personally.
Loans were taken by corporate entities including the four companies named in the latest proposal and Chandra provided personal guarantee on some of these.
LIC Housing Finance is one of the lenders involved in the proceedings and the latest proposal pertains to the loans taken by the four companies. Sources said the proposed settlement will mean companies repay the full face value of the loan instead of asking for reduction in the amount due and an additional 10 per cent interest.
The proposal, however, is subject to the decision of the lender and applicable terms of settlement, there is no confirmation as yet that LIC Housing Finance has accepted the offer.
The latest move underlines the difference between the liability of the borrowing companies to repay the loan and Chandra's obligation as personal guarantor.
Next steps will depend on the decision of LIC Housing Finance on the proposals, said sources.
Published by HT Digital Content Services with permission from Millennium Post.