Tag: creditors

DHFL: Fresh round of voting by CoC on new distribution mechanism

Banking & Finance

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The Committee of Creditors of Dewan Housing Finance Corporation Ltd (DHFL) has initiated a fresh round of voting on a proposed new distribution mechanism.

Under the new proposal, unsecured financial creditors will be paid 40 per cent of their respective admitted claims, similar to the recovery of the secured financial creditors

The development comes after the National Company Law Tribunal held that the prayer sought by Axis Bank, YES Bank and L&T Finance to this end should be merged with the Resolution Plan Approval Order. It had also directed the Committee of Creditors of DHFL “to reconsider the distribution mechanism” for the applicants “as per its commercial wisdom”.

Sources said the Committee of Creditors met on July 5 to discuss the proposal. All other provisions of the original redistribution plan are the same.

“Between the approved distribution mechanism and the current proposed distribution mechanism, the incremental contribution by large secured FCs will be about ₹1,370 crore which is 3.64 per cent of the Resolution Plan Value,” said the proposal.

The recovery for fixed deposit holders would remain at about 23 per cent. They are expected to vote against the fresh proposal on the distribution mechanism.

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Wadhawan plans to challenge NCLT nod to Piramal’s resolution plan for DHFL

Banking & Finance

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Kapil Wadhawan, former promoter of Dewan Housing Finance Corporation Ltd (DHFL), plans to challenge the approval by the National Company Law Tribunal to the resolution plan of Piramal Capital and Housing Finance Ltd.

Wadhawan’s counsel JP Sen informed the National Company Law Appellate Tribunal (NCLAT) about this on Friday.

Sen informed the tribunal that an appeal against the NCLT’s order on June 7 approving Piramal’s resolution plan will be filed in a day or two.

“Wadhawan is likely to file a petition challenging the NCLT order by Monday,” said a person familiar with the development.

Petitions filed by DHFL’s Committee of Creditors (CoC), Administrator and PCHFL came up for hearing before the NCLAT on Friday.

The NCLAT had on May 25 stayed an order by the NCLT, which had directed the lenders to consider the offer made by Wadhawan within a period of 10 days. The stay, which was an interim order, was based on a plea by the Committee of Creditors of DHFL challenging the NCLT order.

Appearing for DHFL administrator, the senior counsel said that since Piramal’s resolution plan has already been approved, the direction by the NCLT to the CoC can not survive.

Delay likely

The NCLAT has adjourned the matter for further hearing to August 2. But with Wadhawan planning to file a petition, the full resolution of DHFL could turn to be further delayed.

Wadhawan has also filed a plea in the Supreme Court challenging the NCLAT stay order.

Small depositors of DHFL, including fixed deposit holders and NCD holder 63 Moons Technologies, are also filing separate appeals for full repayment of their claims.

DHFL’s CoC had earlier this week rejected a plan for higher redistribution of funds to small deposit holders.

The NCLT had on June 7 approved the Piramal Group’s ₹37,250 crore resolution plan for DHFL. This includes an upfront cash component of ₹12,500 crore and a deferred component of ₹19,550 crore.

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