Tag: 63 Moons

DHFL: SC asks NCLAT to wrap up 63 Moons’ appeal against Piramal Group in 2 months

Banking & Finance

[ad_1]

Read More/Less


 

The Supreme Court has directed the National Company Law Appellate Tribunal (NCLAT) to complete the hearing of the appeal filed by 63 Moons Technologies against the Piramal Group’s resolution plan for mortgage financier Dewan Housing Finance Corporation Ltd (DHFL), within two months.

Enabling the implementation of the resolution process of DHFL to continue, the Supreme Court also refused to grant a stay on it.

“63 Moons appeal in NCLAT questioned the legality of Piramal’s Resolution Plan for DHFL, where Piramal may be able to potentially pocket ₹45,000 crore that may be recovered from the Wadhawans and their associates,” 63 Moons said in a statement, adding that the NCLAT, while issuing the notice, did not stay the implementation of the resolution plan.

63 Moons holds non-convertible debentures worth over ₹200 crore issued by DHFL.

It had moved the Supreme Court last month against the NCLAT’s order that refused to stay the resolution plan for DHFL. The next hearing of 63 Moon’s petition in the NCLAT is on September 15.

NCLAT to hear FD holders’ plea in DHFL resolution case on Sept 16

It has issued notices to the Committee of Creditors, the administrator of DHFL and Piramal Capital and Housing Finance Ltd (PCHFL).

The financial services company had approached the NCLAT soon after the NCLT approved (June 7) the Piramal Group’s ₹37,250-crore resolution plan for mortgage financier DHFL, subject to certain conditions.

Steep haircut

The company had termed the resolution plan as disappointing for NCD holders as they have to take a steep haircut.

“The Supreme Court order today is a win-win for both parties. It ensures that the implementation of the resolution plan of DHFL will continue even while the NCLAT will hear the petition of 63 Moons in a time-bound manner and gives clarity to NCD holders,” said an expert.

However, whether 63 Moons will appeal the order of the NCLAT if it is not in its favour remains to be seen.

“The order passed by the Supreme Court has come as a set back to the creditors holding NCDs in DHFL. Though the apex court has directed the NCLAT to expeditiously decide the issue of undue enrichment raised by 63 Moons Technologies Ltd. within two months, the refusal to stay the implementation of the Resolution Plan may cause discontent in the NCD holders, as at present, they stand to bear the maximum loss as opposed to any other creditor of DHFL,” said Ruby Singh Ahuja, Senior Partner, Karanjawala & Co.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

63 Moons to challenge NCLT nod to Piramal’s DHFL buy

Banking & Finance

[ad_1]

Read More/Less


63 Moons Technologies on Tuesday said it plans to challenge the order of the National Company Law Tribunal (NCLT) approving Piramal Group’s resolution plan for Dewan Housing Finance Corporation.

“63 Moons believes that the current resolution plan is contrary to law and against the interest of all DHFL’s creditors, including non-convertible debenture holders,” it said in a statement.

The move comes a day after the Mumbai Bench of the NCLT approved the Piramal Group’s ₹37,250 crore resolution plan for DHFL, subject to certain conditions.

NCD holders disappointed

63 Moons holds over ₹200 crore of NCDs of DHFL. It had earlier filed an application in theNCLT, Mumbai seeking that the fraudulent transaction recovery benefit of about ₹45,000 crore filed by the DHFL administrator should come to creditors, including NCD holders and not to the buyer of the company.

“The current resolution plan is disappointing for NCD holders in as much as they stand to bear the greatest loss as opposed to any other party involved. Other members of the Committee of Creditors, which comprise mainly banks, have recourse to personal guarantees of promoters whereas NCD holders do not have any such contractual recourse,” it added. The statement added that NCD holders will be left high and dry with haircut of 65-75 per cent if, in future, such recoveries from fraudulent transactions are allowed to pass through to the resolution applicants, instead of the creditors.

“63 Moons is awaiting for the copy of the order and will be reviewing its options on the basis of advice from its legal advisors,” it said.

Another challenge

Fixed-deposit holders of DHFL are also planning to challenge the NCLT order in NCLAT as they want 100 per cent re-payment.

63 Moons said the Resolution Plan is drafted in such a way that it favours the resolution applicant or Piramal Group.

“Ascribing a value of ₹1 to the recoveries of fraud where claims are in excess of ₹45,000 crore creates unjust enrichment of the buyer (Piramal) at the cost of creditors,” it said, adding that Piramal has bid only for the current value of DHFL, which does not include these amounts that were taken away fraudulently.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,