DHFL lenders set a deadline of October 30 for revised bids, flay Wadhawan

MUMBAI: lenders from Dewan Housing Finance (DHFL) has requested revised bids without “conditional plans” from the four existing bidders, who must submit the new plans to own the troubled non-bank finance company and its various assets by Friday night, a new deadline has been set.

The Creditors’ Committee (CoC) met on Monday and analyzed the bids it had received from Oaktree, SC Lowy, Adani Capital and The Piramal group. It will probably meet on Saturday to call for revised bids, say three people with knowledge of the case ET. Lenders are in favor of negotiating hard with bidders as they aim to maximize the value of the assets.

Lenders are demanding a better deal from all bidders because these plans are currently at 25% of total assets too low. We may get more clarity over the weekend, “said a senior official involved in discussions.

At the same time, lenders and the RBI-appointed administrator condemned the former promoter Kapil Wadhawan‘S letter offering a realization of over Rs 43,000 crore showing his “personal assets”. They prepare an answer with reference to the fact that it is neither personal assets nor properly documented. Even Wadhawan did not physically show up when asked for help.

Individual bidders held separate virtual meetings with creditors and the RBI-appointed administrator of DHFL on Monday.

DHFL is likely to seek revised bids from existing bidders, ET reported Oct. 26.

“Lenders and the administrator asked bidders to remove several additional terms mentioned in their respective bids,” said a senior executive who was present at the meeting. Bidders appear to be receptive to the proposals made on Monday, but it may take time to submit revised plans.

In its original bid, Oaktree is said to have sought to form a trust including subsidiaries of the flagship DHFL. Insurance business is a declining subsidiary where a foreign player can have no more than 49 percent under foreign direct investment route.

While lenders are not reluctant in it but want the bidder to deal with it commercially instead of making it a conditional settlement plan, sources said.

US-based asset management firm Oaktree made an offer to take over the entire company for around Rs 27,000 crore, Piramal Group bid on the retail loan books for Rs 15,000 crore. The other two are interested in wholesale and SRA books (Slum Rehabilitation Accommodation).

They suggested acquiring the company or choosing assets including retail loans, SRA or construction projects or the wholesale book.

There is a difference in the initial bids submitted. This was where lenders insisted on negotiating hard to elicit stronger bids.

“Wadhawan is offering us what we already have, as this company is now in the possession of banks because it is undergoing bankruptcy, so in that sense it is not an offer worth considering,” said one person involved in the discussions with reference to the former promoter’s letter more than a week ago.

That National Company Law TribunalThe Mumbai chapter admitted DHFL to debt resolution in December last year after the company failed to repay its debt, which is estimated at around Rs 88,000 crore.