DHFL: Lenders open to consideration of bids in the third round

By Ankur Mishra

Lenders to Dewan Housing Finance Corporation (DHFL) have agreed to consider bids submitted in the third round by bidders on November 17, even as there is an option to improve their offers till December 10.

FE has learned that at a meeting held on Tuesday, the Committee of Creditors (CoC) had approved two resolutions to be voted. The first resolution was to give a chance 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 services to jointly file an application before National Company Law Tribunal (NCLT) for seeking vacation of stay on its November 17 order. The voting on both the resolutions started on Friday and will continue till Sunday.

Lenders had earlier decided not to open third round of bids on November 17, after the NCLT stayed the resolution proceedings on a petition filed by National Housing Bank (NHB). NHB’s petition claimed priority over other creditors of the non-banking finance company. Lenders have also proposed to set aside the amount of claim by NHB, pending the outcome of the case at NCLT.

On the fresh bids to be called 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 further 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 already submitted bids in the third round and will submit bids in the fourth round as well. Lenders will evaluate bids and select the best of the bids from the third and fourth round.

Lenders have also made clear in the resolution document that the CoC shall in no way be bound or obligated to open, acknowledge or consider any other letter, offer or resolution plan submitted after December 10, 2020.

Lenders had last opened bids of four shortlisted bidders Oaktree Capital, Adani Properties, Piramal Enterprises and SC Lowy 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 company, the other three bidders had submitted their bids for acquiring the company in parts during second round of bidding. Later, Adani Properties offered Rs 31,250 crore for acquiring whole book of DHFL, just before the third round of bidding on November 17. The other three bidders opposed Adani’s last minute bid and threatened to withdraw from the bidding process.

The admitted claims of financial 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.