Creditors' committee of DHFL to vote on final resolution plans

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By Ashish Mitra --
Tuesday, 29 Dec, 2020

In a latest, it is learnt that the the creditors' committee of the cash trapped Dewan Housing Finance Limited (DHFL) will soon begin voting on the final resolution plans. This comes after multiple rounds of bidding and several revisions in bids by suitors, .

“We will begin the voting process tonight and the voting window will remain open till January 14,” said a senior banking executive with a public sector bank with significant exposure to DHFL. The person added that all the resolution plans submitted so far by the four suitors viz. Oaktree Capital, Piramal Group, Adani Group and SC Lowy will be put to vote.

“The bidder with the highest number of votes from the CoC (committee of creditors), subject of course to crossing the minimum threshold of 66 percent of votes, will be declared the winning bidder,” said another person.

Earlier, it was being said that the CoC would vote on the highest plan under the insolvency and bankruptcy code (IBC). However, as per the revised voting rules under IBC proposed in February this year, all the resolution plans are voted on, and the highest one is declared the winner.

Last week, both Piramal Group and then Oaktree Capital raised their offers by Rs 1,700 crore to secure the lenders’ favour. Both have shot off multiple letters to the lenders, administrator and RBI stating why their offer is better than the other suitors with Oaktree even hinting at taking legal action against the CoC if its proposal is treated unfairly.

Creditors' committee of DHFL to vote on final resolution plans. In a latest, it is learnt that the the creditors' committee of  the cash trapped  Dewan Housing Finance Limited (DHFL) will soon begin voting on the final resolution plans. This comes after multiple rounds of bidding and several revisions in bids by suitors, .

“We will begin the voting process tonight and the voting window will remain open till January 14,” said a senior banking executive with a public sector bank with significant exposure to DHFL. The person added that all the resolution plans submitted so far by the four suitors viz. Oaktree Capital, Piramal Group, Adani Group and SC Lowy will be put to vote.

“The bidder with the highest number of votes from the CoC (committee of creditors), subject of course to crossing the minimum threshold of 66 percent of votes, will be declared the winning bidder,” said another person.

Earlier, it was being said that the CoC would vote on the highest plan under the insolvency and bankruptcy code (IBC). However, as per the revised voting rules under IBC proposed in February this year, all the resolution plans are voted on, and the highest one is declared the winner.

Last week, both Piramal Group and then Oaktree Capital raised their offers by Rs 1,700 crore to secure the lenders’ favour. Both have shot off multiple letters to the lenders, administrator and RBI stating why their offer is better than the other suitors with Oaktree even hinting at taking legal action against the CoC if its proposal is treated unfairly.