Personal guarantee muddle: no insolvency process can manufacture asset value that doesn’t exist
Nine years later, Part III of the IBC, dealing with personal insolvency, produced its first headline case. The sound is familiar, only louder. Claims of about ₹22,007 crore have been admitted against Subhash Chandra as personal guarantor, while the repayment plan before the Adjudicating Authority offers about ₹6 crore to creditors. Read mechanically against the admitted claims, that produces a haircut of more than 99%.
