DHFL resolution: Consider Wadhawan’s offer, NCLT tells lenders

State Financial institution of India (SBI) is the lead creditor with claims of Rs 10,083 crore. NCLT Mumbai will hear the matter subsequent on Could 31.

The Nationwide Firm Legislation Tribunal (NCLT) on Wednesday directed the administrator of Dewan Housing Finance (DHFL) to current the settlement supply of the non-banking monetary firm’s ousted promoter Kapil Wadhawan earlier than the collectors for his or her consideration.

The tribunal, in an oral order, has requested the RBI-appointed administrator of DHFL to current the settlement plan to the committee of collectors (CoC). The CoC has been given 10 days to contemplate the supply.

The course from NCLT comes as a shock to DHFL’s lenders who’ve accepted a bid of Rs 34,250 crore from Piramal Capital and Housing Finance (PCHFL) for the troubled mortgage lender. DHFL is a check case of decision beneath the Insolvency and Chapter Code (IBC) because it was first NBFC to be referred to NCLT in 2019.

Wadhawan’s settlement supply to the CoC in 2020 was rejected by the lenders. He had proposed to repay lenders by promoting belongings.

Wadhawan had earlier proposed a settlement plan of Rs 91,158 crore, claiming he would repay 100% of the principal to all of the collectors. Nonetheless, the lenders had rejected this supply citing authorized recommendation obtained by them. Later, in November 2020 Kapil Wadhawan moved NCLT towards the rejection of his decision plan by the CoC.

In his Rs 91,158-crore supply, Wadhawan had promised to make an upfront cost of Rs 9,000 crore and to service Rs 31,000 crore of debt in seven years at 8.5% every year. In addition to, he had supplied to repay Rs 12,000 crore inside a interval of seven years at 11.5% every year, following a one-year moratorium.

The plan additionally included compensation of Rs 18,000 crore in 5 years at 11% every year, following a five-year moratorium. Loans value Rs 5,000 crore have been to be transformed to fairness, whereas Rs 16,158 crore was to be transformed into zero coupon bonds. Kapil Wadhawan additionally claims he’ll absolutely pay non-convertible debenture (NCD) holders and glued deposit (FD) holders of DHFL.

Ashish Pyasi, affiliate accomplice, Dhir and Dhir Associates, mentioned if the promoters have the wherewithal to fulfil their promise beneath the proposal and the CoC is prepared to just accept the identical, this may result in maximisation of the worth of belongings. Pyasi added the CoC might think about the proposal as per industrial knowledge or transfer the next appellate tribunal to problem the order.

DHFL has been present process insolvency proceedings at NCLT in Mumbai since December 3, 2019. Earlier than it was admitted to the NCLT, the Wadhawans have been in dialogue with lenders to resolve the corporate as per June 7 round of RBI. Later, the regulator outmoded DHFL’s board and referred it to NCLT for decision. DHFL has admitted claims of Rs 87,120 crore.

State Bank of India (SBI) is the lead creditor with claims of Rs 10,083 crore. NCLT Mumbai will hear the matter subsequent on Could 31.

Bondholders have claimed Rs 45,550 crore whereas monetary collectors have sought Rs 41,342.23 crore from the mortgage lender. Emails despatched to DHFL administrator, Piramal and State Financial institution of India didn’t elicit any response until the time of going to press.