DHFL promoter Kapil Wadhawan sent a letter to the Administrator last week offering to repay DHFL’s debt by selling the family property.
DHFL, which is going through the insolvency process, will get a loss of 65 thousand crores even after accepting a big bid of about 95 thousand crore rupees.
The Committee of Creditors (CoC) of the lenders to the Dewan Housing Finance Corporation Limited (DHFL), which is going through the insolvency process, is going to meet today. In this meeting, the resolution plan submitted for the acquisition of the company can be decided. 4 companies have bid to acquire DHFL.
Insolvency process underway in NCLT
DHFL has a debt of about 95 thousand crore rupees. Last year, RBI applied to declare DHFL bankrupt under the Insolvency and Bankruptcy (IBC) code. The insolvency process of DHFL is underway in the Mumbai Bench of the National Company Law Tribunal (NCLT). After dissolving the board of the company, R. Subramanyakumar has been appointed as Administrator.
These companies have bid
- Adani Group
- Piramal Enterprises.
- Oaktree of USA.
- SC Lowy of Hong Kong.
Lenders may have to write off more than Rs 60,000 crore
According to sources, companies have made very low bids for the purchase of DHFL. Oaktree of America has made the biggest bid. Oaktree has bid 20 thousand crore rupees and cash in hand 10 thousand crore rupees against the approved liability of 95 thousand crore rupees. If Oaktree’s bid is accepted, the lenders led by State Bank of India (SBI) will have to write off Rs 65,000 crore.
Kapil Wadhawan has offered to join the resolution process
DHFL promoter Kapil Wadhawan launched a new offer last week to repay the loan. Wadhawan had sent a letter to the Administrator saying that DHFL’s debt could be repaid by selling the family property. Wadhawan had given the value of the family’s assets at Rs 43 thousand crore. Also Kapil Wadhawan offered to join the resolution process.
Many frauds occurred in DHFL
According to last month’s filing, transaction auditor Grant Thornton reported that DHFL had reported fraudulent amounts of Rs 17,394 crore during FY 2007 to FY 2019. Due to the fund diversion by the promoters, the lenders had put the DHFL account in the category of fraud. Another fraud of Rs 12,705.53 crore was detected in the forensic audit. Grant Thornton was also diagnosed with a third fraud earlier this month. The third fraud amounted to Rs 2,150.84 crore, which undervalued the value of DHFL’s insurance subsidiary.
