NCLAT stays order directing DHFL lenders to consider Kapil Wadhawan offer
The National Company Law Appellate Tribunal (NCLAT) has stayed an order which directed the lenders of DHFL to consider the offer by the mortgage firm’s erstwhile promoter Kapil Wadhawan.
The NCLAT bench comprising acting chairman Justice A.I.S. Cheema and member technical V.P. Singh stayed the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) last week.
On May 19, the administrator of DHFL, R. Subramaniakumar, was asked to place Wadhawan’s plan before its committee of creditors (CoC). The tribunal asked the CoC to be convened within 10 days.
Wadhawan had proposed a 100 per cent payment of principal amount to all the creditors, including the non-convertible debenture (NCD) and fixed deposit holders. While DHFL owes around Rs 91,000 crore to its lenders, its CoC has already approved the Rs 34,250-crore resolution plan submitted by Piramal Capital and Housing Finance for the mortgage firm. It includes an upfront cash payment of Rs 14,700 crore and a deferred component through NCDs of Rs 19,550 crore.
The administrator of DHFL, its lenders and the Piramal group had filed applications challenging the May 19 NCLAT order.
The appellate tribunal also clarified that its order should not come in the way of the NCLT approving the resolution plan of the Piramal group, which has been approved by DHFL’s CoC. The NCLAT bench will now take up the matter on June 25.
Jaypee Associates plea
Jaiprakash Associates, the erstwhile promoter of bankrupt-Jaypee Infratech, has said its settlement proposal without any “haircuts” should be considered by the creditors’ panel, which is set to take a call on two existing resolution plans this week.
In a letter to interim resolution professional Anuj Jain, Manoj Gaur, chairman of JAL, has urged him to consider the settlement offer.