DHFL CoC to meet on Dec 18 to evaluate bids

By Ankur Mishra 

The committee of creditors (CoC) of Dewan Housing Finance Corporation (DHFL) will meet on December 18 to discuss bids submitted by the suitors, sources close to the development told FE. Three out of four shortlisted bidders had earlier submitted bids in the latest round. While Oaktree Capital had offered a total of Rs 36,646 crore, Piramal Enterprises had offered Rs 35,550 crore for the entire book of DHFL. Adani Properties had submitted a total bid of Rs 33,110 crore. The fourth suitor, SC Lowy, has not submitted any fresh bid in the fourth round.

Voting on the resolution plan is expected to begin by December 22-23. Sources close to the development said, “Lenders will evaluate bids from all parameters, which include net present value (NPV), cash upfront.”

FE had reported earlier that Piramal Enterprises was offering to pay Rs 1,054 crore more as cash upfront than Oaktree capital in the latest round of bidding. Piramal Enterprises has offered to pay Rs 12,700 crore, while Oaktree is willing to make a cash payment of Rs 11,646 crore. Adani Properties has offered a cash payment of Rs 10,750 crore in its bid. While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal Enterprise has said it will pay Rs 19,550 crore in 10 years. Adani Properties has offered to convert Rs 19,110 crore into debt, payable in seven years.

Lenders will also evaluate bids submitted by the suitors to acquire DHFL in parts. Apart from bidding for the whole company, two shortlisted bidders have also submitted bids in the fourth round to acquire DHFL in parts. Adani Properties has submitted a bid to acquire only the wholesale and slum redevelopment authority (SRA) books of DHFL. Similarly, Piramal Enterprises has submitted a bid to acquire retail assets of the troubled lender.

CoC had earlier called for fresh bids, without opening those submitted in the third round after the National Company law Tribunal (NCLT) stayed the resolution proceedings on a petition filed by the National Housing Bank (NHB). Later, the CoC agreed to consider the bids submitted in the third round, even as there was an option to improve their offers in the fourth round.

The admitted claims of financial creditors from DHFL are at Rs 87,120 crore as on September 10. State Bank of India is the lead creditor with claims of Rs 10,083 crore, followed by Bank of India, which has claimed Rs 4,126 crore. Among others, Canara Bank and NHB have claimed Rs 2,682 crore and Rs 2,434 crore, respectively. DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3.