New Delhi, Aug. 27 -- The National Company Law Tribunal (NCLT) has cleared a repayment proposal for Zee Group founder Subhash Chandra that would allow creditors to recover around Rs.6.5 crore against admitted claims of Rs.22,006.57 crore.

The approval effectively leaves lenders facing a 99.97% haircut, meaning they would recover only about three paise for every Rs.100 they are owed. It has drawn attention because of the exceptionally large gap between the amount claimed by creditors and the amount they are expected to recover.

The repayment proposal was approved after a split decision by two NCLT members. The matter was subsequently referred to Nilesh Sharma, a third member appointed by the NCLT president. Sharma approved the plan under...