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Covid-19 impact: Deadline for DHFL bids may be extended beyond April 16

According to sources, DHFL has shortlisted 22 out of 24 applicants for the resolution of the troubled company.

By Ankur Mishra

The deadline for submission of bids for troubled mortgage lender Dewan Housing Finance Corporation (DHFL) may be extended beyond April 16, as bidders will need more time due to Covid-19 impact, sources close to the development told FE. "Whatever period we are going through will be counted as 'exclusion' going forward, accordingly there will be adjustments in the date of submission of bids," source added.

The troubled lender is undergoing a resolution process under the Insolvency and Bankruptcy Code, 2016, after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the case on December 2, 2019. According to sources, DHFL has shortlisted 22 out of 24 applicants for the resolution of the troubled company. The final date to submit bids for shortlisted candidates was April 16.

FE reported that 24 applicants had submitted expressions of interest (EoIs) for DHFL. The company had given them the option to bid for the whole company or in parts. Under Option I, suitors were invited to submit EoIs for the entire business of DHFL. Under Option II, prospective resolution applicants were invited to submit EoIs for one or more groups or a combination of any assets in isolation across different groups of DHFL. The bids for the bankrupt mortgage lender are to be invited across three areas - retail, non-retail and slum rehabilitation authority (SRA) loans.

Of the 24 applicants, 14 had submitted EoIs for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital, ARCIL Asset Reconstruction Company and Bain Capital were among the suitors who placed EoIs under Option I to take over the entire business.

In the committee of creditors meeting on March 11, lenders decided that 5% more weightage will be given to net present value (NPV) compared with the previous plan. The new evaluation criteria gives 40% weightage to NPV, 30% weightage to cash upfront, 10% for capital infusion, 5% to equity stake and remaining 15% evaluation will be done based on qualitative parameters.

According to sources, the amount claimed by creditors of troubled DHFL has crossed `1 lakh crore in which financial creditors, including bondholders, have claimed Rs 86,469 crore from DHFL.