Oaktree hints at going the legal way in DHFL race

In a letter to the Committee of Creditors (CoC), Oaktree Capital, one of the bidders for DHFL has said that its offer for the troubled housing finance company is being consistently misrepresented and that evaluation of its financial proposals based on incorrect information may be subject to judicial, administrative and investigative review. According to the company, in spite of presenting a bid that offers maximum value for all stakeholders, there appears to be a consistent campaign to misrepresent information on its proposals."In terms of total recovery being offered to Financial Creditors as well as net present value, Oaktree’s financial proposal is clearly superior to all other PRAs," said the company in the said letter.

"Information is not only being presented in an incomplete and inaccurate manner but also in order to discredit Oaktree’s bid and favour the Second Highest Bidder," the letter further added.

An Oaktree spokesperson, in a statement, reiterated that the company has become increasingly concerned that certain pre-determinations have been made in relation to the bids being presented by it.

Oaktree and Piramal group are in a close race for DHFL. The Adani group is also one of the bidders.

A Piramal spokesperson termed claims made by Oaktree in its latest letter to CoC as "mistaken belief".

"The Oaktree bid is short on upfront cash, short on NPV, short on the overall score, un-implementable due to insurance-related complications, and leaves lenders with weak debt paper due to the sub-debt structure offered by Oaktree to themselves," said the Piramal spokesperson in a statement.

"This mail from the applicant appears to be under the mistaken belief that threatening COC members with consequences is going to alter these facts and change the course of a legally run, transparent process in our country," stated an Oaktree spokesperson.Talking on Piramal Group's offer,  the  spokesperson added, "The Piramal plan merges DHFL with an AA-ratedai entity, offers over Rs 10,000 crore of equity immediately, and provides clarity on quality and secondary market valuation of NCDs. The alternative plan is a highly leveraged structure with minimal equity."