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Friday, November 27, 2020

CoC defers decision on DHFL takeover, to take call after December 3

The Adani Group had submitted a bid of more than Rs 31,000 crore for the entire assets of DHFL. This bid had raised eyebrows and Piramal Group wrote a letter to the DHFL lenders protesting against the offer being submitted after November 9, the submission date for the resolution plan.

By: ENS Economic Bureau | Mumbai | November 20, 2020 7:42:52 am
CoC defers decision on DHFL takeover, to take call after December 3

The committee of creditors (CoC) of Dewan Housing Finance Corporation (DHFL) has deferred a decision on selecting the bidder for takeover of the mortgage firm. “The CoC will take a decision only after December 3. The matter has been deferred,” said a senior banking source. The Piramal Group, one of the four bidders, has protested against the bidding process.

In a letter, the Piramal Group said submission of a resolution plan, after the submission date, is neither in accordance with the provision of the revised request for resolution plan dated 16 September 2016 (RFRP) nor the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, (CIRP Regulations).

We hereby reserve all our rights under law and equity to seek appropriate redressal, including withdrawing from the current corporate insolvency process for DHFL, if the unsolicited offer of the Offeree is considered and/or the process set out the RFRP, the IBC and the CIRP Regulations is not duly followed,” the letter stated.

In a stock exchange filing, DHFL said the Administrator has received an e-mail with certain attachments from one of the PRA, the contents of which are not yet known since the e-mail has not been opened by the Administrator. “The CoC during their meeting decided to not open any of the ‘Final Resolution Plan’ or the e-mail received until a consensus by CoC is attained collectively for the same,” the filing said.

The Adani Group had submitted a bid of more than Rs 31,000 crore for the entire assets of DHFL. This bid had raised eyebrows and Piramal Group wrote a letter to the DHFL lenders protesting against the offer being submitted after November 9, the submission date for the resolution plan.

As of now, Adani’s bid is the highest, trumping that of Oaktree and Piramal. While Oaktree had submitted a bid of Rs 31,000 crore for the entire company, the Piramal Group had bid Rs 25,000 crore for DHFL’s retail business.

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