Five bidders in fray for DHFL, lenders looking to extend bid date
September 15, 2020 9:35 AM
The troubled lender had given applicants the option to bid for the whole company or in parts. Of the total applicants, 14 had submitted expressions of interest (EoIs) for the entire business of DHFL.
DHFL had earlier shortlisted 22 applicants for the company.
By Ankur Mishra
Lenders to Dewan Housing Finance Corporation (DHFL) are voting to extend the deadline for submission of bids till October 17, even as five “serious” bidders are conducting due diligence. The voting by lenders will be completed on Tuesday.
The deadline for submission of bids is set to expire on September 16.
The lenders are looking to extend deadline due to a modification in request for resolution plan (RFRP) document for applicants. In the committee of creditors (CoC) meeting on September 10, lenders discussed that bidders should assign a value to ‘likely recoveries’ on dubious transactions of the past, while submitting their proposals.
DHFL’s administrator R Subramaniakumar had earlier moved the National Company Law Tribunal (NCLT) on fraudulent transactions of Rs 14,046 crore according to an initial report of Grant Thornton.
Ashish Pyasi, associate partner, Dhir and Dhir Associates, said, “By changing the RFRP, the CoC will be able to evaluate a monetary value for such transactions also, while negotiating with the resolution applicants.” It may not be an additional liability for resolution applicants as they do their own evaluation of the entire company before submitting plans, he added.
The administrator had earlier ordered three transaction audit reports by Grant Thornton to examine the suspicious transactions of the troubled lender. R Subramaniakumar is said to have told lenders during the meeting on September 10, “There are five serious bidders who have been actively accessing the information provided on virtual data room (VDR) and doing due diligence.”
DHFL had earlier shortlisted 22 applicants for the company. The troubled lender had given applicants the option to bid for the whole company or in parts. Of the total applicants, 14 had submitted expressions of interest (EoIs) for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital and Bain Capital were among those which placed EoIs to take over the entire business.