Billionaire Ajay Piramal’s conglomerate won bidding for bankrupt Indian shadow lender Dewan Housing Finance Corp., advancing a keenly watched insolvency that’s been a test of the country’s bankruptcy system.
Oaktree urges lenders of DHFL to treat its bid fairly
Oaktree, the highest bidder for DHFL, also expressed concerns over an opaque resolution process. Reuters
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Oaktree Capital, which is in a tight race to acquire Dewan Housing Finance Limited ( DHFL) has written to the lenders of the mortgage financier urging fair treatment in the evaluation process of its bid. In a letter to DHFL’s Committee of creditors ( CoC), a copy of which was reviewed by Mint, Oaktree cautioned the creditors against being discriminated against due to its foreign credentials. US headquartered Oaktree which manages over $120 billion in alternative investment funds alleged that it has been subjected to a systematic campaign by vested interest groups to undermine its bid to acquire DHFL which has received competing bids from Piramal Capital and Adani Group. A fourth bidder SC Lowy, a Hong Kong headquartered stressed assets investor backed out of the race recently alleging
DHFL: Lenders seek clarifications from Oaktree, Piramal on conditions in bids
December 20, 2020
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Lenders have sought clarifications from the bidders for Dewan Housing Finance Corporation Ltd (DHFL) by December 21 regarding the conditions they incorporated in their bids.
Sources said the Committee of Creditors (CoC) has asked Oaktree Capital and Piramal Capital & Housing Finance Ltd (PCHFL) to explain their position on the acquisition of DHFL’s indirect shareholding in Pramerica Life Insurance Ltd (through DHFL’s wholly owned subsidiary company DHFL Investments Ltd) and the hold-back clause relating to treatment of tax liabilities.
Holdback entails withholding payment of a portion of the acquisition price until some post-closing conditions have been met.