DHFL lenders to meet today to discuss bids

December 24, 2020 3:15 AM

FE has learned that lenders are likely to give 40% weightage to the net present value (NPV) of resolution plan and 30% weightage to upfront cash.

Ajay Piramal, chairman Piramal Enterprises and Oaktree Capital had separately written to DHFL lenders in favour of their resolution plans.Ajay Piramal, chairman Piramal Enterprises and Oaktree Capital had separately written to DHFL lenders in favour of their resolution plans.

By Ankur Mishra

The committee of creditors (CoC) of Dewan Housing Finance Corporation (DHFL) will meet on Thursday to discuss bids submitted in the fourth round of bidding. The agenda of the meeting includes evaluation of the resolution plans, discussion on distribution mechanism, among others. The agenda also includes voting on the approval of resolution plans.

FE has learned that lenders are likely to give 40% weightage to the net present value (NPV) of resolution plan and 30% weightage to upfront cash. Similarly, 10% weightage will be there for capital infusion, 5% to equity stake and remaining 15% evaluation will be done based on qualitative parameters. The qualitative parameters include track record of resolution applicant and its key management personals.

According to sources, lenders are closely evaluating competing bids from Oaktree Capital and Piramal Capital and Housing Finance (PCHFL). American asset management firm Oaktree Capital, PCHFL and Adani Properties had earlier submitted bids for the entire book of DHFL in the latest round of bidding. While Oaktree Capital had offered Rs 36,646 crore, Piramal Capital and Housing Finance offered Rs 35,550 crore for the troubled lender. Adani Properties had submitted a total bid of Rs 33,110 crore for DHFL.

Ajay Piramal, chairman Piramal Enterprises and Oaktree Capital had separately written to DHFL lenders in favour of their resolution plans.

While Piramal had pointed out that their bid for DHFL was Rs 2,500 crore higher than next bid, Oaktree Capital claimed that its bid exceeded Piramal’s bid by `1,150 crore on a notional basis. Oaktree Capital also underlined that their bid was exceeding by Rs 1,478 crore than Piramal’s offer on an NPV basis. While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal Capital has said it will pay Rs 19,550 crore in 10 years as per sources.

DHFL has been undergoing insolvency proceedings at National Company Law Tribunal (NCLT) in Mumbai since December 3 and has admitted claims of Rs 87,120 crore. State Bank of India is the lead creditor with claims of Rs 10,083 crore.

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