DHFL resolution: CoC to meet on May 12 to discuss COVID-19 impact

Published: May 9, 2020 1:30 AM

Lenders will get an update on the progress of transaction audit report by Grant Thornton on May 12, as per the agenda of the meeting.

DHFL had already extended the deadline for the submission of bids for the company to May 26, from April 16 earlier.DHFL had already extended the deadline for the submission of bids for the company to May 26, from April 16 earlier.

By Ankur Mishra

The committee of creditors (CoC) of beleaguered mortgage lender Dewan Housing Finance Corporation (DHFL) will meet on May 12 to discuss the demands of the bidders for relaxing bidding criteria and relook at the timeline of the resolution post the Covid-19 scenario, sources close to development told FE. This will be first meeting of the lenders post the Covid-19 lockdown. DHFL had already extended the deadline for the submission of bids for the company to May 26, from April 16 earlier.

“The CoC will discuss exclusion granted by Insolvency and Bankruptcy Board of India (IBBI) and subsequent changes in the timelines of corporate insolvency resolution process (CIRP),” the agenda circulated among lenders said. IBBI had earlier notified on March 29 that the lockdown period would be excluded from the resolution process timeline. The CoC will also discuss impact of Covid-19 on the operations of DHFL.

Lenders will get an update on the progress of transaction audit report by Grant Thornton on May 12, as per the agenda of the meeting. The administrator R Subramaniakumar had told lenders in a CoC meeting held on March 12 that certain past transactions of the troubled mortgage lender may be ‘avoidance’ — a term used for preferential, undervalued, extortionate or fraudulent nature of transactions. The administrator had earlier ordered three transaction audit reports by Grant Thornton to examine the suspicious transactions of the troubled lender.

DHFL had shortlisted 22 out of 24 applicants for the resolution of the troubled company. The home loan financier had given applicants the option to bid for the whole company or in parts. Of the total applicants, 14 had submitted expression of interests (EoIs) for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital, ARCIL Asset Reconstruction Company and Bain Capital were among the suitors who placed EoIs to take over the entire business.

The troubled lender has been undergoing a resolution process at the Mumbai bench of the National Company Law Tribunal (NCLT) since December 2, 2019.

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