63 moons moves NCLT seeking recovery for DHFL creditors

By: |
January 01, 2021 3:00 AM

“The benefit of avoidance applications for approximately Rs 30,000 crore filed by DHFL administrator under section 66 of Insolvency and Bankruptcy Code (IBC) should come to CoC, including NCD holders, who are the actual sufferers of the default,” 63 moons said in a release.

DHFL administrator R Subramaniakumar had earlier filed several avoidance applications at bankruptcy court, based on the report filed by Grant Thornton.DHFL administrator R Subramaniakumar had earlier filed several avoidance applications at bankruptcy court, based on the report filed by Grant Thornton.

Financial services company Rs 63 moons’ wants the creditors of Dewan Housing Finance Corporation (DHFL) to receive the money, instead of the prospective buyer, incase recovery happens in the alleged fraudulent transactions by former promoters.

The financial services company has moved National Company Law Tribunal (NCLT), Mumbai, seeking the benefit of ‘avoidance applications’ for the committee of creditors (CoC).

DHFL administrator R Subramaniakumar had earlier filed several avoidance applications at bankruptcy court, based on the report filed by Grant Thornton.

Avoidance applications are filed for preferential, undervalued, extortionate or fraudulent transactions. DHFL’s administrator had ordered transaction audit reports by Grant Thornton to examine the suspicious transactions of the troubled lender. 63 moon holds over Rs 200 crore non-convertible debentures (NCD) of DHFL.

“The benefit of avoidance applications for approximately Rs 30,000 crore filed by DHFL administrator under section 66 of Insolvency and Bankruptcy Code (IBC) should come to CoC, including NCD holders, who are the actual sufferers of the default,” 63 moons said in a release.

At present, as per the resolution plans submitted by resolution applicants, the benefit or the recovery amount arising from the avoidance applications will go to resolution applicant, it further said. NCLT will hear 63 moons’ petition on January 13.

DHFL’s lenders have started voting on the resolution plans submitted by Oaktree Capital, Piramal Capital and Housing Finance (PCHFL), and Adani Properties. The voting is likely to be concluded by the second week of January. DHFL has admitted claims of Rs 87,120 crore and State Bank of India (SBI) is the lead creditor.

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