Kapil Wadhawan sends fresh proposal to DHFL lenders

By Ankur Mishra

The erstwhile promoter of Dewan Housing Finance Corporation (DHFL) Kapil Wadhawan has written a fresh letter to Reserve Bank of India (RBI) governor Shaktikanta Das and DHFL’s administrator offering to repay 100% principal amount to all the creditors. In his revised proposal of Rs 91,158 crore for the creditors, Wadhawan has promised to make an upfront payment of Rs 9,000 crore.

Wadhawan has written a letter at a time when lenders are set to begin voting this week on the bids of Oaktree Capital, Piramal Capital and Housing Finance (PCHFL), and Adani Properties.

The letter says, “I earnestly request the RBI to place my proposal, through the administrator, to the committee of creditors (CoC) for its immediate consideration and for my proposal to be voted upon along with the bids submitted by the other bidders.”

In his proposal, Wadhawan has offered to service Rs 31,000 crore debt in 7 years at 8.5% per annum. Apart from that, he has offered to repay Rs 12,000 crore within a period of 7 years at 11.5% per annum, following a one-year moratorium. The plan also includes repayment of Rs 18,000 crore in 5 years at 11% per annum, following a 5-year moratorium. While Rs 5,000 crore will be converted to equity, Rs 16,158 crore will be converted into zero coupon bonds as per the proposal.

DHFL has been undergoing insolvency proceedings at National Company Law Tribunal (NCLT), Mumbai since December 3, 2019. The lender has admitted claims of Rs 87,120 crore. State Bank of India (SBI) is the lead creditor with claims of Rs 10,083 crore.