DHFL promoter Kapil Wadhawan moves NCLT, wants CoC to consider offer

Topics DHFL | NCLT

Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Corporation
Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Corporation (DHFL), moved the National Company Law Tribunal (NCLT) earlier this week, seeking the tribunal’s direction to the administrator and committee of creditors (CoC) to consider the package the then management had prepared for the beleaguered company.

 

The offer, he claimed, was in accordance with the June 7 circular of the Reserve Bank of India (RBI).

 

Wadhawan also sought the tribunal’s permission to assist the CoC on the bids being received. And, pending the hearing and final disposal of the application, Wadhawn sought deferral of the consideration of bids received for DHFL.

 

He also asked the tribunal to submit the resolution plan presented by the erstwhile management to an independent expert appointed by the tribunal itself along with the bids received. The independent expert then could give its opinion on the most appropriate plan keeping in mind the interest of all stakeholders and public at large.

 

Wadhawan is of the view that the bidders are essentially seeking to take over the company, with barely any investment, whilst offering a massive haircut on the amounts due to the various creditors of DHFL.

 

Prior to filing the application, Wadhawan had written to the administrator drawing attention to the real value of the various properties in respect of which bids may be invited.

 

In the second letter to the administrator, Wadhawan said the bids that came in for DHFL do not do justice to DHFL and its stakeholders.

 

Wadhawan alleged that since the cash reserves of DHFL were increasing every month over and above the available cash reserves of Rs 12,000 crore, the upfront payment being made by the bidders would be even lower than the cash reserves available with DHFL, when the company is handed over to the bidders.

 

In July 2019, lenders to DHFL had signed an inter-creditor agreement in accordance with June 7 circular of RBI. In the application, Wadhawan has said the resolution was approved in principle by all the banks and the National Housing Bank.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel