After numerous rounds of bidding, and various revisions in bids by the suitors, the creditors’ committee of Dewan Housing Finance Limited (DHFL) is set to start voting on the final resolution plans, CNBC-TV18 reported citing sources.
“We will begin the voting process tonight, and the voting window will remain open till January 14,” a senior banking executive with a public sector bank with important exposure to DHFL told the organization channel. All the resolution plans submitted so far by the 4 suitors – Oaktree Capital, Piramal Group, Adani Group and SC Lowy- will be place to vote.
According to the report, “The bidder with the highest number of votes from the CoC (committee of creditors), subject of course to crossing the minimum threshold of 66 percent of votes, will be declared the winning bidder.”
Oaktree Capital and Piramal Group are noticed neck and neck in the race to obtain DHFL, with Adani Group’s present for the complete book a very good Rs 5,000 crore decrease than the highest bidders. SC Lowy did not bid for the complete book, and is the lowest by far and not noticed as a contender by the lenders.
Last week, each Piramal Group and then Oaktree Capital raised their gives by Rs 1,700 crore to safe the lenders’ favour.
As for the final gives that will be deemed by the CoC when voting on plans, Oaktree Capital’s proposal stands at Rs 38,400 crore for the complete book, compared to Rs 37,250 crore provided by Piramal Group. Adani Group’s present for the complete book of DHFL stood at Rs 33,110 crore, as per men and women in the know.
Oaktree Capital’s present:
Of the total Rs 38,400 crore provided by Oaktree Capital, Rs 11,700 crore is in the type of upfront money. Oaktree has also provided Rs 3,000 crore of money to lenders from the interest earned on the current money on DHFL’s books, a further Rs 1,000 crore for the insurance coverage organization, and Rs 1,700 more money for interest earnings soon after NCLT approval. This requires the total money for the creditors at Rs 17,400 crore. The remaining Rs 21,000 crore is in the type of instruments payable more than 7 years, as per men and women straight conscious of the present. Oaktree’s takeover of DHFL would also outcome in DHFL’s current shareholders’ equity becoming wiped down to zero, which has been the case with virtually all resolutions beneath the IBC.
Piramal Group’s present:
Piramal Group’s total present of Rs 37,250 crore involves a larger upfront money payment of Rs 12,700 crore to the creditors. Piramal Group has also provided Rs 3,000 crore of money to lenders from the interest earned on the current money on DHFL’s books, a further Rs 1,000 crore for the insurance coverage stake, and Rs 1,000 more money for interest earnings soon after NCLT approval. This requires the total money for the creditors at Rs 17,700 crore. The remaining Rs 19,550 crore is in the type of instruments payable more than 10 years. Piramal Group’s takeover of the DHFL organization would also entail writing off current shareholders’ equity to zero, the report stated.
DHFL is the initially monetary services corporation to be sent to NCLT beneath IBC and is facing claims of Rs 87,031 crore from monetary creditors led by SBI, Union Bank of India and other folks.