NCLT asks DHFL creditors to consider ex-promoter Wadhawan’s settlement offer

By: |
May 19, 2021 6:35 PM

The tribunal, in an oral order, has asked the RBI-appointed administrator of Dewan Housing Finance Ltd (DHFL) to present the settlement plan to the Committee of Creditors (CoC).

The lenders' stand that his offer cannot be accepted as he was facing criminal proceedings cannot be used as a justification to cause an avoidable loss of over Rs 50,000 crore, Wadhawan said.The lenders' stand that his offer cannot be accepted as he was facing criminal proceedings cannot be used as a justification to cause an avoidable loss of over Rs 50,000 crore, Wadhawan said.

The National Company Law Tribunal (NCLT) on Wednesday directed the administrator of DHFL to present the settlement offer of the non-banking financial company’s ousted promoter Kapil Wadhawan before the creditors for their consideration.

The tribunal, in an oral order, has asked the RBI-appointed administrator of Dewan Housing Finance Ltd (DHFL) to present the settlement plan to the Committee of Creditors (CoC).

The CoC has been given 10 days’ time to consider the offer.

In the second half of 2020, Wadhawan had made his settlement offer to the CoC, which was rejected by the lenders.

In the plan, Wadhawan had proposed to repay lenders by selling assets.

Lenders had rejected the offer citing lack of credibility and the valuations attached to the proposed asset sales.

The creditors had in January 2021 voted in favour of selling DHFL to Piramal Group under the bankruptcy process.

While the Reserve Bank of India (RBI) and the Competition Commission of India (CCI) have given their approvals, a final nod from the NCLT was awaited.

In November 2019, the RBI had referred DHFL, the third-largest pure-play mortgage lender, to the NCLT for insolvency proceedings.

DHFL had gone bankrupt with more than Rs 90,000 crore in debt to various lenders including banks, mutual funds and individual investors who kept fixed deposits with the company.

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