The creditors of stressed mortgage lender Dewan Housing Finance Corporation Limited (DHFL) have approved the resolution bid submitted by Piramal Capital and Housing Finance Limited. The decision was taken at the 18th committee of creditors (CoC) meeting held on 15 January 2021.
The e-voting process on resolutions pursuant to the 18th meeting of the Committee of Creditors of the company concluded on 15 January 2021 and the resolution plan submitted by Piramal Capital and Housing Finance Limited was duly approved by CoC by majority voting under section 30(4) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(3) of CIRP Regulations, as the successful resolution plan.
Since the conclusion of the fifth and final round of the bidding process last month, Piramal and Oaktree Capital each claimed that their bid was the highest and fully implementable. According to sources, suitors have submitted bids in the range of Rs 35,000-37,000 crore.
In November 2019, the Reserve Bank referred Dewan Housing Finance Limited (DHFL), the third-largest clear mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.
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 Before that, the company's board was superseded and R Subramaniakumar was appointed as the administrator.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).
DHFL’s large lenders are SBI, including SBI Singapore with Rs. 10,083 crore exposure. Others are Bank of India (Rs 4,125 crore), Canara Bank (Rs 2,681 crore), NHB (Rs 2,434 crore), Union Bank (Rs 2,378 crore), Syndicate Bank (Rs 2,229 crore), 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). As of July 2019, the company owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.