Zee Shares Plunge as Lenders Challenge Subhash Chandra Insolvency Plan

Shares of Zee Entertainment Enterprises Ltd fell as much as 15% on Monday following news that dissenting lenders intend to challenge the approval of a personal insolvency repayment plan for Subhash Chandra. The National Company Law Tribunal approved a plan offering a total payout of ₹6.5 crore against admitted claims of approximately ₹22,006.57 crore, with ₹6.25 crore allocated to creditors and ₹25 lakh for process costs.

Lenders, including Canara Bank and HDFC Bank, argue that the approval process was flawed. They claim five entities linked to the Chandra family improperly held 61.78% of the voting share and should have been excluded as related parties under the Insolvency and Bankruptcy Code. The insolvency proceedings were originally triggered by personal guarantees Chandra provided for loans secured by Essel and Zee-linked entities.

While NCLT judicial member Nilesh Sharma initially cleared the proposal, stating the tribunal should not substitute its commercial judgment for a decision backed by the majority of creditors, the matter remains pending before the regular bench for final directions. Canara Bank has announced it will challenge the decision before the National Company Law Appellate Tribunal.