DHFL lenders push deadline to Dec 10
Lenders to Dewan Housing Finance Corp. Ltd (DHFL) have extended the deadline for bidders to submit revised resolution plans, betting that a potential bidding war among the suitors will help banks extract more value from the assets of the bankrupt home financier.
The decision to seek revised bids till December 10 was taken after Adani Group made a higher unsolicited bid for the entire portfolio last week.
In the voting on Wednesday, the lenders allowed all four suitors to submit revised bids for a part or entire portfolio of the mortgage lender. The committee of creditors (CoC) had taken the legal opinion of former attorney general Mukul Rohtagi in the matter. “Existing PRAs (prospective resolution applicants) may submit revised and duly executed resolution plans which have improved commercial terms/value over the resolution plans submitted on November 17 in compliance with the terms of RFRP (request for resolution plans) dated September 16, on or before December 10,” according to the minutes of the voting.
In case any of the bidders fail to offer an improved plan before the deadline, the CoC will consider the one submitted on November 17 as the final resolution plan. The lenders also decided that all resolution plans received so far will be opened on December 10 for further evaluation. The CoC made it clear that it will not be accepting any more resolution plans submitted thereafter.
Extending the deadline till December 10 also gives more time to the CoC to take into account any decision by the Mumbai bench of the NCLT, which is expected to hear the National Housing Bank’s challenge to the resolution process on December 3. NCLT had ordered a stay on all resolution plans after the National Housing Bank asserted its right to receive proceeds from the resolution process over other lenders.