DHFL bidding: CoC declares Piramal as successful bidder

The creditors of debt-laden mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) has declared Piramal Capital and Housing Finance Ltd (PCHFL), a subsidiary of Piramal Enterprises, as a successful bidder. In a filing to exchange, Piramal Enterprises said that the administrator of DHFL has informed the company of the Committee of Creditors (CoC) decision through a Letter of Intent (LOI).

"We wish to inform you that the Administrator of DHFL vide Letter of Intent ('LOI') dated 22nd January, 2021, has intimated that the Committee of Creditors of DHFL have declared Piramal Capital & Housing Finance Limited ('PCHFL'), wholly owned subsidiary of the Company, as the Successful Resolution Applicant in relation to the Corporate Insolvency Resolution Process of DHFL under the Insolvency & Bankruptcy Code, 2016 and identified the resolution plan submitted by PCHFL, as the Successful Resolution Plan," says billionaire Ajay Piramal-led firm.

The company further stated that the implementation of the resolution plan is subject to the terms of the LOI and requisite approvals from Reserve Bank of India, National Company Law Tribunal (NCLT) Mumbai Bench and other regulatory authorities under applicable laws.

The committee of creditors (CoC) had approved the resolution bid submitted by Piramal Capital and Housing Finance at the 18th committee of creditors (CoC) meeting held on January 15, 2021. Reports suggest that Piramal's bid received 94 per cent votes, as opposed to 45 per cent votes to competitor Oaktree Capital.

In November 2019, the Reserve Bank referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings. As of July 2019, the company owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.

DHFL was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC. Before that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).

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