DHFL aims for special package for retail, seeks final bids
The transfer suggests the administrator won’t settle for an offbeat provide that may set off a authorized battle and delay the decision course of, folks with data of the matter instructed ET, which has seen a duplicate of the letter. A final resolution hasn’t been taken. Final bids must be submitted by 10am Wednesday.
Meanwhile, lenders are contemplating a devoted package for retail mounted deposit/debenture holders of as much as Rs 7 lakh per unit, proposing to repay considerably increased sums. The final resolution can be taken quickly with the committee of collectors doubtless assembly on Wednesday.
Since the third week of October, the lenders have been negotiating as they search the best doable recoveries from the house financier, which had borrowed about Rs 88,000 crore from banks, establishments and retail people.
Last week, Adani Capital sprang a shock by providing to purchase the entire firm as a substitute of buying the wholesale loans given to establishments. It wrote to the Reserve Bank of India-appointed administrator proposing to pay about Rs 250 crore greater than Oaktree Capital, which had provided Rs 31,000 crore for the entire firm. No detailed, formal fee schedule has arrived, barring a letter.
“The debt resolution process will lose its sanctity if lenders agree to consider the marginally higher surprise offer, which came beyond the stipulated timeline,” stated a senior government concerned within the decision course of.
The matter was mentioned ultimately week’s credit score committee assembly, with retail mounted deposit/debenture holders favouring the identical. However, institutional lenders highlighted the implications, with doable authorized motion from different bidders.
“Other existing bidders are likely to take the legal course, which in turn would lead to a lingering, Essar-like situation,” stated one other government related to the DHFL decision.
DHFL didn’t reply to ET’s queries. Individual bidders couldn’t be contacted instantly for remark.
OakTree, Piramal Group, Adani Capital and SC Lowy raised their gives to personal DHFL property by as a lot as 50% after lenders rejected their preliminary proposals. Bidders have dropped as many as 50 circumstances they introduced in earlier, paving the best way for the decision course of, ET reported on November 10.
Piramal proposed to pay about Rs 23,000 crore, excluding curiosity on retail loans accrued throughout the lockdown/insolvency interval. It aims to purchase the retail property from DHFL. Adani Capital and SC Lowy are considering buying the loans given to establishments and slum rehabilitation tasks.
“We have to still check the details in the revised Adani bid. It is a complicated case and not that straightforward,” stated a banker concerned within the negotiations. The committee of collectors has to fulfill and see what’s in it for them.
SBI Capital Markets is understanding the decision plan for the monetary collectors. It will doubtless current an evaluation to the committee of collectors on Wednesday, when the bids are anticipated to return up for voting. The bids are divided into two classes: the entire enterprise and piecemeal foundation.
