Business · India Bureau
Banks challenge NCLT approval of Subhash Chandra debt restructuring plan
Canara Bank, Union Bank of India and LIC Housing Finance have filed appeals against the National Company Law Tribunal's decision to approve a repayment arrangement proposed by Subhash Chandra, seeking to overturn the order at the appellate level.
LSN India ·
Three major lenders have moved the National Company Law Appellate Tribunal (NCLAT) to challenge the National Company Law Tribunal's (NCLT) approval of a debt restructuring plan presented by Subhash Chandra, the promoter of Essel Group.
Canara Bank, Union Bank of India, and LIC Housing Finance have filed separate appeals contesting the NCLT's decision to sanction the repayment scheme. The lenders' move signals continued friction over the terms and feasibility of the proposed arrangement, with the appellate tribunal now poised to examine whether the lower court's approval was justified.
The appeal comes as Essel Group has been navigating significant financial stress following the collapse of its Yes Bank investment strategy. The debt restructuring plan was submitted as part of efforts to address mounting liabilities and negotiate with creditors over revised payment schedules.
The NCLAT's examination of the lenders' appeals will focus on whether the NCLT properly evaluated the viability of the repayment plan and whether creditors' interests were adequately protected. The outcome could reshape the financial obligations that Chandra and his group face in the coming months.
No timeline has been indicated for the appellate tribunal's hearing on the matter.