DHFL lenders file for personal insolvency against Wadhawans

Mumbai: Dewan Housing Finance Corp Ltd lenders have applied to the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate personal insolvency proceedings against former developers Kapil and Dheeraj Wadhwan, according to a person familiar with the matter. case.

DHLF must 87,031 crores from financial creditors, including 39,000 crore from banks. “We will contact Catalyst Trusteeship Ltd (CTL) and see if they can join in or perhaps if they can ask the banks to reduce their recovery in the resolution in proportion to the recovery of the Wadhawans if any,” one said. bondholders who spoke conditionally. of anonymity.

Union Bank of India, the lead bank, filed a lawsuit on behalf of all the lenders against the entire exposure of 38,000 crore. Alvarez & Marsal has been appointed as the resolution professional (PR) in this case.

The recent move by lenders comes at a time when the mortgage financier’s resolution process is currently underway and lenders have called for a fresh round of auctions from existing bidders for the fourth time.

“The process of opening the insolvency proceedings started 2 months ago and the file was filed on Tuesday evening. The PR can invite other creditors to claim claims,” the person quoted previously said.

In October, Wadhawan offered to pay more than 43,000 crores to all creditors without discount. Last week, Mint reported that Wadhwan had approached NCLT against the administrator of the bankrupt mortgage lender and the Committee of Creditors (CoC) over offers made by the four suitors seeking to repossess its assets.

He also asked the NCLT to be allowed to participate in CoC meetings as his advocacy with the Administrator did not work.

In a motion filed Nov. 24, Wadhawan asked the court not to allow bids received from the four bidders, Oaktree Capital, Piramal Enterprises, Adani Group and SC Lowy, calling their bids “absurd”.

Adani made the highest bid among the bidders of 31,250 crores for purchasing DHLL’s entire business.

Wadhawan highlighted the efforts to ensure repayments to creditors and the resolution plan proposed by him without any discount for lenders to whom DHFL owes approximately 88,000 crore. The plea urged the bankruptcy court to order that DHFL’s resolution plan be submitted to an independent expert appointed by NCLT along with bids received from all four bidders.

Wadhawan appealed that until the hearing and final decision on the final claim, the court should order the administrator to grant him access to all documents and records of DHFL.

He also urged the NCLT to request the CoC and the administrator to defer consideration of the bids received from the four bidders until the hearing and final decision on the Wadhawan’s final appeal.

Wadhawan, in a November letter to RBI-appointed administrator Subramaniakumar, had requested a second hearing with the lenders to reconsider the proposed resolution he had submitted in October.

“Even today, I am prepared to adhere to the principle of 100% repayment of principal amounts to all creditors without any discount, as I believe from the activities of DHFL that such recovery is possible” , Wadhwan said in the letter.

“As an added incentive, I am also willing for all creditors, including the NCD and fixed deposit holders, to convert some of their debt into equity in order to take advantage of the increased equity that they will get once the business is revived and revitalized and the business resumes normal operations,” he said.

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