DHFL lenders likely to meet again this week to discuss bids

December 21, 2020 3:15 AM

Lenders had earlier met on Friday & Saturday and sought few clarifications from Oaktree Capital and Piramal Enterprises which needs to be responded to by Monday.

DHFL had total assets amounting to Rs 79,800 crore as of March 2020, as per its annual report.

By Ankur Mishra,

The committee of creditors (CoC) of Dewan Housing Finance Corporation (DHFL) is likely to meet again this week to discuss bids submitted by the suitors, sources close to development told FE. Lenders had earlier met on Friday & Saturday and sought few clarifications from Oaktree Capital and Piramal Enterprises which needs to be responded to by Monday.

While Oaktree Capital had offered a total of Rs 36,646 crore, Piramal Enterprises had offered Rs 35,550 crore for DHFL’s entire book. Adani Properties had submitted a total bid of Rs 33,110 crore for the company.

FE had reported earlier that Piramal Enterprises was offering to pay Rs 1,054 crore more as cash upfront than Oaktree capital in the latest round of bidding. Piramal Enterprises has offered to pay Rs 12,700 crore, while Oaktree is willing to make a cash payment of Rs 11,646 crore. Adani Properties has offered a cash payment of Rs 10,750 crore in its bid.

While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal Enterprises has said it will pay Rs 19,550 crore in 10 years. Adani Properties has offered to convert Rs 19,110 crore into debt, payable in 7 years.

CoC, had earlier, called for fresh bids, without opening those submitted in the third round after the National Company law Tribunal (NCLT) stayed the resolution proceedings on a petition filed by the National Housing Bank (NHB). Later, the CoC agreed to consider bids submitted in the third round, even as there was an option to improve their offers in the fourth round of bidding.

The admitted claims of financial creditors from DHFL are at Rs 87,120 crore as on September 10. State Bank of India is the lead creditor with claims of Rs 10,083 crore, followed by Bank of India which has claimed Rs 4,126 crore. Among others, Canara Bank has claimed Rs 2,682 crore while National Housing Bank (NHB) has claimed Rs 2,434 crore. DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3.

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