By Ankur Mishra
Lenders to Dewan Housing Finance Corporation (DHFL) have agreed to take into consideration bids submitted in the third round by bidders on November 17, even as there is an solution to strengthen their presents till December 10.
FE has discovered that at a meeting held on Tuesday, the Committee of Creditors (CoC) had authorized two resolutions to be voted. The initially resolution was to give a likelihood to shortlisted bidders for submission of fresh bids till December 10. The other resolution was to authorise Union Bank of India, State Bank of India (SBI) and Catalyst Trusteeship solutions to jointly file an application just before National Company Law Tribunal (NCLT) for in search of getaway of keep on its November 17 order. The voting on each the resolutions began on Friday and will continue till Sunday.
Lenders had earlier decided not to open third round of bids on November 17, immediately after the NCLT stayed the resolution proceedings on a petition filed by National Housing Bank (NHB). NHB’s petition claimed priority more than other creditors of the non-banking finance enterprise. Lenders have also proposed to set aside the quantity of claim by NHB, pending the outcome of the case at NCLT.
On the fresh bids to be named in the fourth round, the resolution document reviewed by FE says, “If any of the existing prospective resolution applicants (PRAs) do not submit a duly executed resolution plan on or before December 10, 2020, then resolution plan submitted by such existing PRA on November 17, 2020, will be considered as their final resolution plan for evaluation.”
DHFL’s voting resolution document additional says, “On December 10, 2020, the CoC shall open all revised resolution plans received on November 17, 2020, (through any medium) by the existing PRAs as well as all resolution plans submitted on December 10, 2020.”
Lenders have also specified evaluation mechanism for the resolution applicants who have currently submitted bids in the third round and will submit bids in the fourth round as properly. Lenders will evaluate bids and choose the most effective of the bids from the third and fourth round.
Lenders have also produced clear in the resolution document that the CoC shall in no way be bound or obligated to open, acknowledge or take into consideration any other letter, provide or resolution strategy submitted immediately after December 10, 2020.
Lenders had final opened bids of 4 shortlisted bidders Oaktree Capital, Adani Properties, Piramal Enterprises and SC Lowy immediately after the second round of bidding on November 9. While Oaktree Capital had submitted a bid of Rs 31,000 crore for all the assets of the enterprise, the other 3 bidders had submitted their bids for acquiring the enterprise in components for the duration of second round of bidding. Later, Adani Properties provided Rs 31,250 crore for acquiring entire book of DHFL, just just before the third round of bidding on November 17. The other 3 bidders opposed Adani’s final minute bid and threatened to withdraw from the bidding procedure.
The admitted claims of economic creditors from DHFL stood at Rs 87,120 crore as on September 10. SBI is the lead creditor with a claim of Rs 10,083 crore.