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FD holders left out of DHFL’s resolution bids
DHFL’s committee of creditors (CoC) has received revised bids from Adani Group, Piramal Enterprises, US-based Oaktree Capital and Hong Kong-based SC Lowy to either buy a stake in the company or buy out its assets, two people familiar with the development said.
Uncertainty persists over the fate of fixed deposits (FD) totalling ₹5,375 crore with the Dewan Housing Finance Corp. Ltd (DHFL), even as bidders for the bankrupt mortgage lender raised their bids.
DHFL’s committee of creditors (CoC) has received revised bids from Adani Group, Piramal Enterprises, US-based Oaktree Capital and Hong Kong-based SC Lowy to either buy a stake in the company or buy out its assets, two people familiar with the development said.
However, there is no clarity over whether the resolution plans include repaying its 55,000 FD holders. DHFL is facing claims of ₹87,031 crore from financial creditors, including ₹39,000 crore from banks.
“Legally speaking, the claims of banks and bondholders of DHFL have more weightage than FD holders, but given the fact that the plight of FD holders comprising small investors is a highly emotive and sensitive issue, it is possible that CoC may take a more accommodative stance,” a third person said.
The CoC will meet on November 17 to finalise the highest bidder. Last month, the National Company Law Tribunal (NCLT) had allowed 90 days’ extension for the resolution process till January 5.
Oaktree Capital raised its bid for the entire portfolio to ₹31,000 crore from ₹28,000 crore earlier, while Piramal Enterprises raised its bid for the retail portfolio to ₹26,000 crore from ₹15,000 crore earlier, the two people cited earlier said. Adani has offered ₹2,700 crore for the wholesale and SRA book (which comprises loans to projects being developed for Slum Redevelopment Authority) compared to ₹2,200 crore earlier, while SC Lowy has raised its bid for the non-SRA book to ₹2,300 crore from ₹1,500 crore earlier, the people said.
“The final decision on the total payout will be taken by the CoC, which also has a representative of FD holders,” said one of the two people. Bidders have suggested that after the acquisition, DHFL will issue non-convertible debentures (NCDs) at 6.5% coupon to lenders, existing NCD holders and also to themselves. These NCDs will form the debt component and the equity component will be a much smaller portion, the two people cited initially said.
