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DHFL Insolvency: NCLT accepts Piramal Group’s resolution plan for beleaguered housing financier

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DHFL Insolvency: NCLT accepts Piramal Group’s resolution plan for beleaguered housing financier

The Mumbai bench of the National Company Law Tribunal has accepted the Piramal Group’s resolution plan for the crisis-ridden mortgage lender, Dewan Housing Finance (DHFL) with a few conditions. The Tribunal, however, rejected DHFL’s promoter’s plea to get a copy of the resolution plan.



NCLT also asked the Committee of Creditors to consider giving more money to small FD holders under the approved resolution plan, according to moneycontrol.com

“We are not remanding plan back to CoC; we respect their commercial wisdom,” the NCLT said passing the order.

The NCLT’s order is subject to final judgement from the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court’s judgement on Kapil Wadhawan in the matter. On 25 May, the NCLAT stayed an order of the NCLT that directed the DHFL lenders to consider Wadhwan’s settlement offer.

Piramal Group’s resolution plan for DHFL was cleared by the creditors committee in January this year, after an intense bidding war between suitors, including Oaktree Capital and Adani Group. Piramal Group’s resolution plan was subsequently cleared by the Reserve Bank of India (RBI) in February, and by the Competition Commission of India (CCI) in April

In the second half of 2020, Wadhawan had made his settlement offer to the CoC, which was rejected by the lenders. In the plan, Wadhawan had proposed to repay lenders by selling assets. Lenders had rejected the offer citing lack of credibility and the valuations attached to the proposed asset sales. The creditors had in January 2021 voted in favour of selling DHFL to Piramal Group under the bankruptcy process. While the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) have given their approvals, a final nod from the NCLT was awaited.


Also Read: RBI keeps repo rate unchanged at 4 pc; cuts growth forecast to 9.5 pc


In November 2019, the RBI had referred DHFL, the third-largest pure-play mortgage lender, to the NCLT for insolvency proceedings. DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders including banks, mutual funds and individual investors who kept fixed deposits with the company

(with PTI inputs)


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