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DHFL lenders take into account particular package deal for retail holders

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Mumbai: The RBI-appointed administrator of troubled Dewan Housing Finance Corporation Ltd. has sought revised gives for the third time throughout the current asset classes that Oaktree, Adani Capital, Piramal Group and SC Lowy bid for earlier.

The transfer suggests the administrator won’t settle for an offbeat supply that may set off a authorized battle and delay the decision course of, folks with data of the matter informed ET, which has seen a replica of the letter. A remaining choice hasn’t been taken. Final bids should be submitted by 10am Wednesday.

Meanwhile, lenders are contemplating a devoted package deal for retail mounted deposit/debenture holders of as much as Rs 7 lakh per unit, proposing to repay considerably greater sums. The remaining choice will probably be taken quickly with the committee of collectors seemingly assembly on Wednesday.

Since the third week of October, the lenders have been negotiating as they search the best attainable recoveries from the house financier, which had borrowed about Rs 88,000 crore from banks, establishments and retail people.

Last week, Adani Capital sprang a shock by providing to purchase the entire firm as an alternative of buying the wholesale loans given to establishments. It wrote to the Reserve Bank of India-appointed administrator proposing to pay about Rs 250 crore greater than Oaktree Capital, which had supplied Rs 31,000 crore for the entire firm. No detailed, formal cost schedule has arrived, barring a letter.

“The debt resolution process will lose its sanctity if lenders agree to consider the marginally higher surprise offer, which came beyond the stipulated timeline,” mentioned a senior govt concerned within the decision course of.

The matter was mentioned finally week’s credit score committee assembly, with retail mounted deposit/debenture holders favouring the identical. However, institutional lenders highlighted the implications, with attainable authorized motion from different bidders.

“Other existing bidders are likely to take the legal course, which in turn would lead to a lingering, Essar-like situation,” mentioned one other govt related to the DHFL decision.

DHFL didn’t reply to ET’s queries. Individual bidders couldn’t be contacted instantly for remark.

OakTree, Piramal Group, Adani Capital and SC Lowy raised their gives to personal DHFL belongings by as a lot as 50% after lenders rejected their preliminary proposals. Bidders have dropped as many as 50 situations they introduced in earlier, paving the best way for the decision course of, ET reported on November 10.

Piramal proposed to pay about Rs 23,000 crore, excluding curiosity on retail loans accrued through the lockdown/insolvency interval. It goals to purchase the retail belongings from DHFL. Adani Capital and SC Lowy are curious about buying the loans given to establishments and slum rehabilitation initiatives.

“We have to still check the details in the revised Adani bid. It is a complicated case and not that straightforward,” mentioned a banker concerned within the negotiations. The committee of collectors has to satisfy and see what’s in it for them.

SBI Capital Markets is figuring out the decision plan for the monetary collectors. It will seemingly current an evaluation to the committee of collectors on Wednesday, when the bids are anticipated to come back up for voting. The bids are divided into two classes: the entire enterprise and piecemeal foundation.

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