DHFL's creditors extend deadline for fresh bids to December 14

Bankrupt housing firm Dewan Housing Finance Corporation (DHFL)'s committee of creditors have sought fresh bids from all four bidders by December 14. It was on the advice of former attorney general of India, Mukul Rohatgi that creditors sought fresh bids for the bankrupt housing firm.

Now, the bidders will have an option to either submit a fresh bid or continue with November 17 bid. Additionally, DHFL's creditors have also given the freedom to bid either for a portion of the loan book or for the entire portfolio.

Adani Group, Piramal Group, US-based asset management company Oaktree Capital Management and Hong Kong-based SC Lowy are the four entities that submitted bids for DHFL in October.  In the initial offer, Adani Group bid only for DHFL's wholesale and Slum Rehabilitation Authority (SRA) portfolio.

However, the lenders, who are getting DHFL auctioned to recover unpaid loans, wanted suitors to revise their bids as original offers were low. In the revised bid, Adani Group bid for the entire book, offering a total of Rs 30,000 crore plus interest of Rs 3,000 crore on November 17.

This was more than Rs 28,300 crore offered by Oaktree. Piramal quoted Rs 23,500 crore only for the retail portfolio of DHFL while SC Lowy bid Rs 2,350 crore for SRA.

Subsequently, all three rival bidders cried foul over Adani's bid, saying the group had submitted the bid past the deadline and sought disqualification of Adani.

DHFL is the first financial services company which has been sent to NCLT under the insolvency and bankruptcy code (IBC). DHFL is facing claims of Rs 87,031 crore from financial creditors.

Its large lenders include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2,681 crore, NHB Rs 2,434 crore, Union Bank of India Rs 2,378 crore, Syndicate Bank Rs 2,229 crore and Bank of Baroda Rs 2,075 crore, Indian Bank Rs 1,552 crore, Central Bank Rs 1,389 crore, IDBI Bank Rs 999 crore, and HDFC Bank Rs 361 crore.

DHFL had total assets amounting to Rs 79,800 crore as of March 2020, as per its annual report. Of these, Rs 50,227 crore of assets forming 63 per cent of the total portfolio were reported as non-performing assets (Gross NPAs). Of this, its retail book stood at Rs 33,500 crore, with gross NPAs of Rs 7,147 crore forming 21.32 per cent of the total portfolio. The wholesale book, including SRA loans, stood at Rs 42,860 crore, of which a  Rs 39,690 crore or 92.61 per cent of the entire portfolio is categorised as gross NPAs.

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