DHFL creditors to vote on proposal to seek fresh bids
Creditors to Dewan Housing Finance Corporation Ltd (DHFL) will conclude voting on a proposal to seek fresh bids for the insolvent housing financier on Wednesday.
If the proposal gets the support of at least 66 per cent of creditors by value, fresh bids will be invited by December 13 instead of the earlier deadline of December 10. It is learnt that the lenders are not against the proposal and, therefore, it is expected to get the green signal.
Voting was expected to end last Saturday but it has been extended because of the weekend and holiday on Monday.
Adani Properties, Piramal Group, Oaktree Capital Management and SC Lowy had submitted bids for DHFL in October.
While the Adani Group had initially bid only for DHFL’s wholesale and Slum Rehabilitation Authority (SRA) portfolio, it submitted a revised offer for the entire book on November 17. Its Rs 33,000 crore bid was more than the Rs 28,300 crore offered by Oaktree.
The Piramal group had quoted Rs 23,500 crore for the retail portfolio of DHFL while SC Lowy had bid Rs 2,350 crore for the SRA assets. The Adani group’s move had led to a protest from rival bidders who claimed that its bid was submitted after the deadline and that it cannot make revisions to its original plan.
With the lenders also wanting the suitors to revise their bids, they are now proposing to give them more time to submit fresh bids. They have now allowed the existing participants to bid for any option instead of their earlier stand on only allowing to revised bids for any of the option that was submitted on November 17.
They have proposed that the potential resolution applicants may submit “revised and duly executed resolution plans which have improved commercial terms”.