DHFL: Court Halts Balloting Process on Four Final Bids

DHFL: Court Halts Balloting Process on Four Final Bids

A city court stopped the balloting process on the four final bids received for Dewan Housing Finance Corporation or DHFL. The bids were submitted by firms like Oaktree, Piramal Group, SC Lowy, and Adani Capital. 

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It is said that the process was stopped so as to get the opinion of National Housing Bank (NHB) which has used regulatory provisions to seek a larger chunk of the proceeds. In the meanwhile, the committee of creditors has reportedly deferred the decision on the winner of the bid until December 3, 2020, as per the city court’s decision which hasn’t been publicized yet. 

Adani Capital managed to take the other bidders by surprise with a bid of well over ₹31,000 crores for the entirety of DHFL. 

People familiar with the matter have said that the offer also came with some conditions, though these haven’t been publicly disclosed as of yet. A senior banker who chose to remain anonymous said that some deemed Adani Capital’s bid disruptive as it came after the deadline.

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The delay in the process also means DHFL’s ₹88,000 crores of soured debt will take a while to be resolved. Consultations are expected to continue over the next few weeks until a decision is made in early December. 

The Committee of Creditors is also said to be working on a comprehensive recovery plan for individuals that have invested up to ₹7 lakhs on DHFL via debentures or fixed deposits.

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