DHFL goals for particular package deal for retail, seeks last bids

Mumbai: The RBI-appointed administrator of troubled Dewan Housing Finance Corporation Ltd. has sought revised offers for the third time throughout the current asset classes that Oaktree, Adani Capital, Piramal Group and SC Lowy bid for earlier.

The transfer suggests the administrator is not going to settle for an offbeat supply that may set off a authorized battle and delay the decision course of, individuals with data of the matter instructed ET, which has seen a replica of the letter. A last resolution hasn’t been taken. Remaining bids must be submitted by 10am Wednesday.

In the meantime, lenders are contemplating a devoted package deal for retail mounted deposit/debenture holders of as much as Rs 7 lakh per unit, proposing to repay considerably larger sums. The ultimate resolution shall be taken quickly with the committee of collectors probably assembly on Wednesday.

For the reason that third week of October, the lenders have been negotiating as they search the very best potential recoveries from the house financier, which had borrowed about Rs 88,000 crore from banks, establishments and retail people.

Final week, Adani Capital sprang a shock by providing to purchase the entire firm as an alternative of buying the wholesale loans given to establishments. It wrote to the Reserve Financial institution 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 decision course of will lose its sanctity if lenders agree to contemplate the marginally larger shock supply, which got here past 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. Nonetheless, institutional lenders highlighted the implications, with potential authorized motion from different bidders.

“Different current bidders are prone to take the authorized course, which in flip would result in a lingering, Essar-like state of affairs,” stated one other government related to the DHFL decision.

DHFL didn’t reply to ET’s queries. Particular person bidders couldn’t be contacted instantly for remark.

OakTree, Piramal Group, Adani Capital and SC Lowy raised their affords to personal DHFL belongings 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 goals to purchase the retail belongings from DHFL. Adani Capital and SC Lowy are serious about buying the loans given to establishments and slum rehabilitation initiatives.

“We’ve got to nonetheless test the small print within the revised Adani bid. It’s a difficult case and never that simple,” 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’ll probably 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.

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