In the request filed on November 24, Wadhawan urged the court not to allow the offers received from the four bidders: Oaktree Capital, Piramal Enterprises, Adani Group and SC Lowy, calling their offers “absurd.”
Adani has made the highest bid among the four bidders with Rs. Rs 31,250 crore for purchasing the entire DHFL business.
Wadhawan, along with his original proposal made in October to pay more than Rs. 43,000 crore, he has now appealed to the NCLT to be allowed to be a part of the CoC meetings as his request to the administrator has not worked.
Wadhawan, in his appeal, has explained the efforts made by former DHFL promoters after the eruption of the September 2018 NBFC crisis to revive the status of the company.
He also explained about the Wadhawans’ efforts to guarantee repayments to creditors and about the resolution plan without any haircuts for the lenders to whom DHFL owes around Rs. 88,000 crore.
Wadhawan has asked the NCLT to consider the financial package for the reactivation of DHFL prepared by him.
He said the court can order that DHFL’s resolution plan be submitted to an independent expert appointed by NCLT along with the offers received from the resolution applicants (the four bidders).
Wadhawan said the independent expert should be directed to submit a report to the NCLT, giving the expert’s opinion regarding the most appropriate plan to be considered in the interest of all stakeholders and the general public.
“The court must allow the applicant, that is, Wadhawan (without prejudice to his rights and arguments in the pending proceedings) to address and assist the committee of creditors to appreciate and consider the offers received for DHFL in the proper perspective and allow the applicant to assist in the corporate insolvency resolution process, “Wadhawan’s appeal read.
Wadhawan appealed that until the hearing and final disposition of Wadhawan’s latest application, the court must order the RBI-appointed administrator to give him access to all DHFL documents and records.
Furthermore, Wadhawan has urged the NCLT to request the CoC and the administrator to postpone consideration of the offers received from the four bidders until the hearing and final disposition of Wadhawan’s latest appeal.
Wadhawan, in a second letter in early November to RBI-appointed administrator Subramaniakumar, had requested a second hearing from the lenders to reconsider his proposed resolution that he had submitted in October.
On November 24, Mint reported that DHFL lenders are likely to seek new offers for the bankrupt mortgage lender after the unsolicited offer from the Adani group last week.
A revised bidding process is expected to generate higher value for banks that are currently willing to make significant cuts in exposures to the lender.
Mint was the first to report on Nov.20 that State Bank of India (SBI), the lead lender, had asked other lenders to convince the company’s four suitors to update their offers, as an improvement in quality of DHFL assets has succeeded. most valuable.
The CoC cannot vote on a resolution until NCLT hears the matter on Dec. 3 on the resolution plan submitted by the four suitors.
To be sure, the DHFL CoC met last Tuesday to discuss ways to address issues related to the bids made by the four bidders.
Piramal and Oaktree have threatened to withdraw from the race if the CoC accepts Adani’s offer.
DHFL owes Rs. Rs 10,083 crore to SBI alone, from Rs. Rs 88 billion to be repaid to DHFL’s 58 lenders.
In October, Kapil Wadhawan, the former DHFL promoter, wrote a letter to the RBI, stating that the Wadhawan family can monetize the underlying assets of DHFL worth at least Rs. 43,000 crore and repaying the lenders.
SBI, at its meeting on Tuesday, has communicated to the CoC for DHFL’s insolvency resolution process that the bidding rounds for the four existing potential investors will continue until the investment offer / realization is better than the offer of Rs. 43,000 crore made by the Wadhawans.
The DHFL auction took a dramatic turn after Adani unexpectedly offered a higher price than Piramal and Oaktree to buy the entire DHFL business, despite the binding bid round being closed.
Piramal has offered ₹26,000 crore for DHFL retail books just while Oaktree had bid ₹31,000 crore for the entire company. Adani had bid for the first time ₹2,700 crore for wholesale / slum redevelopment authority books only. But, in a sudden move, Adani decided to bid ₹250 crore more than Oaktree for the entire company.
To this, Piramal wrote a letter of objection to DHFL’s creditors, stating that it will take legal recourse if Adani’s offers are accepted.
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