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Oaktree Capital is highest bidder

Oaktree Capital is highest bidder for cash strapped DHFL

By Ashish Mitra --
Wednesday, 16 Dec, 2020

Oaktree Capital management has turned out to be the highest bidder for Dewan Housing Finance Corporation Ltd (DHFL) in a revised round of bidding

The Global alternative asset investor has bid Rs. 32,700 crore followed by Piramal group which offered Rs.32350 crore and Adani that offered Rs.29860 crore to buy the entire portfolio of the mortgage financier. SC Lowy, which had earlier bid for DHFL’s assets did not submit a fresh bid after lenders called for revised bidding in anticipation of a higher offer for the company’s assets.

Adani Group and Piramal Group also submitted a separate offer for the wholesale and slum rehabilitation projects controlled by DHFL. The revised bids were called after Adani's unsolicited offer to buy the entire company instead of the select assets it had bid on earlier. In the previous round of bidding, Oaktree Capital had revised its bid price for the entire portfolio to Rs.31,000 crore from Rs. 28,000 crore. Piramal Enterprises had revised its bid price for the retail portfolio to Rs.26,000 crore from Rs.15,000 crore earlier while Adani had offered Rs.2,700 crore for the wholesale and SRA book and SC Lowy has upped its bid for the non-SRA book to Rs.2,300 crore fromRs. 1,500 crore.

But, in a surprise move, Adani offered to bid Rs. 250 crore more than Oaktree for the entire firm which led to lenders calling for the fourth round of bidding.

Dewan Housing Finance Corp. Ltd’s erstwhile promoter Kapil Wadhawan had himself offered a proposal for repayment to the creditors of DHFL on the same day the company received revised bids from resolution applicants like Oaktree Capital, Piramal Enterprises, Adani Group and SC Lowy. In a letter to the administrator, Wadhawan reiterated his offer to make 100 per cent repayment to all creditors within 7-8 years with an upfront payment of Rs. 9000 crore.

Wadhawans had proposed that the settlement plan will commence from fiscal year 2022 onwards and will ensure completion of stalled projects for recovery of dues from borrowers in wholesale business. Going forward the company will focus on fresh retail loans, the letter said.

DHFL’s outstanding loan book stands at Rs.67,000 crore, which includes wholesale loans worth Rs.40,000 crore, retail loans worth Rs. 17,000 crore and delinquent loans worth Rs.10,000 crore. The company went under insolvency in November last year, after the Reserve Bank of India asked lenders to initiate proceedings.

Oaktree Capital is highest bidder for cash strapped DHFL. Oaktree Capital management has turned out to be the highest bidder for Dewan Housing Finance Corporation Ltd (DHFL) in a revised round of bidding

The Global alternative asset investor has bid  Rs. 32,700 crore followed by Piramal group which offered Rs.32350 crore and Adani that offered Rs.29860 crore to buy the entire portfolio of the mortgage financier. SC Lowy, which had earlier bid for <a href="https://www.livemint.com/companies/news/dhfl-lenders-file-personal-insolvency-case-against-wadhawans-11606927568093.html" target="_blank">DHFL</a>’s assets did not submit a fresh bid after lenders called for revised bidding in anticipation of a higher offer for the company’s assets.

Adani Group and Piramal Group also submitted a separate offer for the wholesale and slum rehabilitation projects controlled by DHFL. The revised bids were called after Adani's unsolicited offer to buy the entire company instead of the select assets it had bid on earlier. In the previous round of bidding, Oaktree Capital had revised its bid price for the entire portfolio to Rs.31,000 crore from Rs. 28,000 crore. Piramal Enterprises had revised its bid price for the retail portfolio to Rs.26,000 crore from Rs.15,000 crore earlier while  Adani had offered Rs.2,700 crore for the wholesale and SRA book and SC Lowy has upped its bid for the non-SRA book to Rs.2,300 crore fromRs. 1,500 crore.

But, in a surprise move, Adani offered to bid Rs. 250 crore more than Oaktree for the entire firm which led to lenders calling for the fourth round of bidding.

Dewan Housing Finance Corp. Ltd’s erstwhile promoter <a href="https://www.livemint.com/companies/news/wadhawan-offers-fresh-proposal-to-dhfl-lenders-11607951094335.html" target="_blank">Kapil Wadhawan</a> had himself offered a proposal for repayment to the creditors of DHFL on the same day the company received revised bids from resolution applicants like Oaktree Capital, Piramal Enterprises, Adani Group and SC Lowy. In a letter to the administrator, Wadhawan reiterated his offer to make 100 per cent repayment to all creditors within 7-8 years with an upfront payment of Rs. 9000 crore.

Wadhawans had proposed that the settlement plan will commence from fiscal year 2022 onwards and will ensure completion of stalled projects for recovery of dues from borrowers in wholesale business. Going forward the company will focus on fresh retail loans, the letter said.

DHFL’s outstanding loan book stands at Rs.67,000 crore, which includes wholesale loans worth Rs.40,000 crore, retail loans worth Rs. 17,000 crore and delinquent loans worth Rs.10,000 crore. The company went under insolvency in November last year, after the Reserve Bank of India asked lenders to initiate proceedings.