The story so far: The National Company Law Tribunal (NCLT) on August 25 approved a repayment plan for Essel Group founder Subhash Chandra under the Insolvency and Bankruptcy Code, 2016 (IBC). Under the plan, ₹6.25 crore will be paid to creditors and ₹25 lakh towards the insolvency resolution process costs. This is against admitted claims of ₹22,006.57 crore, implying a recovery of about 0.03%, or a haircut of nearly 99.97%, which means a drop in the value of collateral assets, which reduces the lender’s protection against losses. Some creditors, including HDFC Bank, have opposed the plan and are considering an appeal.

The case before the NCLT concerned Mr. Chandra’s liability as a personal guarantor and was not against the Essel Group as a corporate entity.