DHFL administrator moves NCLAT against NCLT’s Kapil Wadhawan order

By: |
May 25, 2021 1:00 AM

Lower bankruptcy court asked lenders to consider Kapil Wadhawan’s settlement offer

On the 14th page of the 86-page NCLT order by HP Chaturvedi and Ravikumar Duraisamy, it says DHFL no longer is a deposit taking NBFC but a non-deposit taking one.On the 14th page of the 86-page NCLT order by HP Chaturvedi and Ravikumar Duraisamy, it says DHFL no longer is a deposit taking NBFC but a non-deposit taking one.

The administrator for Dewan Housing Finance Corporation (DHFL) has moved the National Company Law Appellate Tribunal (NCLAT) against the lower bankruptcy court’s order asking lenders to consider Kapil Wadhawan’s settlement offer. Sources close to development have told FE that the administrator has requested the appellate tribunal to set aside the May 19 order of the Mumbai bench of the National Company Law Tribunal (NCLT). The appeal by DHFL administrator is, however, yet to be admitted by the NCLAT.

“We had to move NCLAT as this is a test case and tomorrow any promoter will quote the DHFL case and file a case against the lenders,” said one official involved in the matter. DHFL is seen as a test case under the Insolvency and Bankruptcy Code (IBC), as it was first NBFC to be referred to NCLT in 2019.

NCLT had earlier directed DHFL’s administrator to present the settlement offer of the non-banking financial company’s ousted promoter Kapil Wadhawan before the creditors for their consideration. The tribunal had asked the RBI-appointed administrator of DHFL to present the settlement plan to the committee of creditors (CoC) by May 29.

Lenders have already approved a bid of Rs 34,250 crore from Piramal Capital and Housing Finance (PCHFL) for the troubled mortgage lender. However, the final approval of the resolution plan by NCLT is still pending.

Wadhawan had earlier proposed a settlement plan of Rs 91,158 crore, claiming he would repay 100% of the principal to all the creditors. The settlement offer was rejected by the lenders in which he had proposed to repay lenders by selling his assets. In his Rs 91,158-crore offer, Wadhawan had promised to make an upfront payment of Rs 9,000 crore and to service Rs 31,000 crore of debt in seven years at 8.5% per annum. Besides, he had offered to repay Rs 12,000 crore within a period of seven years at 11.5% per annum, following a one-year moratorium. Kapil Wadhawan has also claimed that he would repay in full non-convertible debenture (NCD) holders and fixed deposit (FD) holders of DHFL.

DHFL has been undergoing insolvency proceedings at NCLT in Mumbai since December 3, 2019. The troubled mortgage lender has admitted claims of Rs 87,120 crore, with State Bank of India (SBI) being the lead creditor.

Bondholders have claimed Rs 45,550 crore while financial creditors have sought Rs 41,342.23 crore from the mortgage financier.

Emails sent to DHFL administrator, Piramal Capital and the State Bank of India did not elicit any response till the time of going to press.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India to launch Phase 1 of ‘single-window system’ for investors soon, says Union Minister Piyush Goyal
2SIDBI revamps term loan scheme LIQUID for Covid-hit MSMEs; enables credit up to 20% of highest outstanding
3Did Clubhouse leak its own potential private messaging feature? It seems so