FD holders left out of DHFL’s resolution bids

Uncertainty persists over the destiny of mounted deposits (FD) totalling ₹5,375 crore with the Dewan Housing Finance Corp. Ltd (DHFL), whilst bidders for the bankrupt mortgage lender raised their bids.

DHFL’s committee of collectors (CoC) has acquired revised bids from Adani Group, Piramal Enterprises, US-based Oaktree Capital and Hong Kong-based SC Lowy to both purchase a stake within the firm or purchase out its property, two folks accustomed to the event mentioned.

However, there isn’t any readability over whether or not the decision plans embrace repaying its 55,000 FD holders. DHFL is dealing with claims of ₹87,031 crore from monetary collectors, together with ₹39,000 crore from banks.

“Legally speaking, the claims of banks and bondholders of DHFL have more weightage than FD holders, but given the fact that the plight of FD holders comprising small investors is a highly emotive and sensitive issue, it is possible that CoC may take a more accommodative stance,” a 3rd particular person mentioned.

The CoC will meet on November 17 to finalise the best bidder. Last month, the National Company Law Tribunal (NCLT) had allowed 90 days’ extension for the decision course of until January 5.

Oaktree Capital raised its bid for all the portfolio to ₹31,000 crore from ₹28,000 crore earlier, whereas Piramal Enterprises raised its bid for the retail portfolio to ₹26,000 crore from ₹15,000 crore earlier, the 2 folks cited earlier mentioned. Adani has provided ₹2,700 crore for the wholesale and SRA ebook (which includes loans to initiatives being developed for Slum Redevelopment Authority) in comparison with ₹2,200 crore earlier, whereas SC Lowy has raised its bid for the non-SRA ebook to ₹2,300 crore from ₹1,500 crore earlier, the folks mentioned.

“The final decision on the total payout will be taken by the CoC, which also has a representative of FD holders,” mentioned one of many two folks. Bidders have instructed that after the acquisition, DHFL will situation non-convertible debentures (NCDs) at 6.5% coupon to lenders, current NCD holders and likewise to themselves. These NCDs will kind the debt part and the fairness part might be a a lot smaller portion, the 2 folks cited initially mentioned.