The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the Piramal Group’s resolution plan for Dewan Housing Finance Limited (DHFL). The order is subject to the outcome of the appeal in the appellate tribunal and the Supreme Court. Piramal’s plan offers to pay Rs 37,250 crore, with upfront cash of Rs 12,700 crore; it has already been approved by the committee of creditors (CoC), the Reserve Bank of India (RBI), and the Competition Commission of India (CCI). NCLT has asked the committee of creditors to allocate more funds to the fixed deposit holders and small investors, but ot has left the final decision to the CoC. It has also rejected the erstwhile promoter s plea to get a copy of the resolution plan.
Read more about DHFL back in the black, posts Rs 97-crore net profit in March quarter on Business Standard. While its committee of creditors as well as the RBI and the CCI, have given their approval to the resolution plan put forward by the Piramal Group, the plan is awaiting the NCLT
Kapil Wadhawan, erstwhile promoter of Dewan Housing Finance Limited (DHFL), has moved Supreme Court against the order of the National Company Law Appellate Tribunal (NCLAT), staying the ruling of the bankruptcy tribunal (NCLT) asking banks to consider his offer. The lenders and the RBI-appointed administrator of DHFL had moved the NCLAT, challenging the order passed by the tribunal, saying there was no basis in law for such an order or the NCLT could not direct the committee of creditors (CoC) to consider a plan. In a letter to the administrator in December, Wadhawan had reiterated his offer to pay the entire outstanding principal of Rs 91,158 crore to creditors an upfront payment of Rs 9,000 crore and the remainder in the form of debt-to-equity conversion across 7-8 years.
Read more about Kapil Wadhawan s 2nd proposal must be tested on merit, put to vote: NCLT on Business Standard. Directs administrator to place proposal before the CoC and inform the outcome within 10 days
Finance > Banks & institutions > Companies (banking) > RBI
RBI clears Piramal Group s takeover plan for DHFL
19 February 2021
Reserve Bank of India (RBI) is reported to have cleared Piramal Capital and Housing Finance Limited’s (PCHFL) proposal to acquire bankrupt Dewan Housing Finance Limited (DHFL), as proposed by the committee of creditors (CoC).
RBI gave its go-ahead for the deal earlier this week, clearing Piramal Capital and Housing Finance under the “fit and proper” criteria required for the acquisition. However, RBI turned down a request by PCHFL, a non-deposit taking NBFC, to get converted into a deposit-taking NBFC.
RBI’s nod brings Piramal Group one step closer to the acquisition of DHFL, pending the final clearance from the National Company Law Tribunal (NCLT).