The former developer of Dewan Housing Finance Corporation Limited (DHFL), affected by the crisis, Kapil Wadhawan has urged the manager of the company to consider his proposal. for 100 percent repayment of principal to all creditors within 7-8 years rather than allowing the sale of DHFL at a lower offer.
Citing his latest effort to ensure that “billions of billions of public money are not irretrievably lost,” Wadhawan, iIn a letter to the DHFL administrator, he urged him to consider his proposed settlement of Rs 91,158 crore for all lenders, which is much more than the next highest offer of just a sum of Rs 36,646 crore.
Wadhawan has submitted a proposal to the administrator of DHFL, the Prime Minister’s Office, the Ministry of Corporate Affairs, the Ministry of Finance and other agencies to repay 100 percent of the principal to all creditors within 7-8 years.
In his proposal, Wadhawan promised to pay an upward payment of Rs 9,000 crore to creditors, along with the repayment of an additional amount of Rs 76,814 crore over a period of 7-8 years and the conversion of debt to equity of Rs 4,970 crore. .
“In other words, my proposal seeks to pay a total sum of Rs 91,158 crore (constituting 100% of the principal owed to the lenders) as opposed to the resolution seekers who have only offered upfront payments ranging from Rs. 10,000 to Rs .12,000 crore and a deferred payment ranging from 19,000 to 21,000 payable over a period of 7 to 10 years, “Wadhwan said in his letter to the administrator.
The core object of the IBC is value maximization in the best interest of all stakeholders, he said.
“This proposed settlement is my last effort to ensure that billions of millions of public money are not irretrievably lost. I sincerely hope that the Committee of Creditors will consider the broader public interest and consider your proposed settlement. on his merits, “Wadhwan added.
