The Reserve Bank of India (RBI) on Thursday cleared the Rs 34,250-crore acquisition of Dewan Housing Finance Corporation (DHFL) by the Piramal group.
The central bank appointed administrator will file an application at Mumbai National Company Law Tribunal seeking approval from the court. In the next two-three days, the application is likely to be filed.
Flashback
The firm was sent to the NCLT in November 2019 after the company defaulted on its debt worth Rs 90,000 crore and auditors found a Rs 15,000-crore hole in its books. The promoters of the company are currently in jail and facing money-laundering charges.
On January 15, the lenders to DHFL voted in favour of Piramal’s debt resolution plan for DHFL, paving the way for the turnaround of the bankrupt housing finance company.
Piramal had offered upfront cash of Rs 14,700 crore, including cash on DHFL’s balance sheet, and a deferred component (non-convertible debentures) of Rs 19,550 crore.
Oaktree, an American asset management company, secured around 45 percent votes, while another bidder, Adani Capital, is believed to have got 18 percent votes.
Oaktree’s bid for DHFL was at Rs 38,400 crore against Piramal’s Rs 37, 250 crore. Piramal’s offer, however, had a higher upfront cash payment and that swung support in its favour.
What next?
Now, The committee of creditors to DHFL will now approach the National Company Law Tribunal to get a final clearance on the resolution plan, before implementing it.
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