Kapil Wadhawan, the former developer of Dewan Housing Finance Corporation Ltd (DHFL), has urged the Reserve Bank of India, the servicer and the lenders of the indebted mortgage financier to properly consider his settlement proposal, which he claims is better than the offers. submitted as part of the resolution process thus far.
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His latest letter of December 29 comes at a time when the vote on the resolution plans has already begun with fierce competition between at least two bidders: Oaktree Capital and Piramal Capital and Housing Finance Ltd. Adani and SC Lowy are also in the running. career. Noting the bidding war between Oaktree and Piramal, Wadhawan in his letter noted that there is the possibility of potential litigation between bidders.
“… despite such damaging contingencies, it is unfortunate that my settlement proposal does not appear to have been considered at all, although I am offering far more value than any of the current bidders, even more than the recent increase from Piramal,”, Wadhawan said in the letter addressed to RBI Governor Shaktikanta Das, DHFL administrator R Subramaniakumar, and the Creditors Committee.
The resolution plans for both Oaktree and Piramal total more than ₹ 38,000 crore and the lenders will analyze various evaluation metrics for the tender.
Better than other offers
“You will appreciate that the alternative proposal I have made now is significantly better than the offers made by any of the bidders by a wide margin. It is clear that the bidders are not offering any real value for the wholesale book and are looking to keep to themselves the profits they will make through more retail loans, ”said Wadhawan. His revised offer also has a total value of ₹ 91,158 crore and provides for the full repayment of principal to all creditors. Among other provisions, it includes Rs 31 billion to be paid over a seven-year period in equal annual installments with an interest of 8.5 per cent per annum.
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“… it will be clear to all that the proposal is not only fully implementable, but is also in the best interest of all creditors and will guarantee the recovery of billions of millions of public money,” he added.
Under the proposal, with the conversion of part of the debt into equity, the banks will become the majority shareholders of DHFL and Wadhawan said he is willing to appoint a professional management and have him act as a consultant.
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