The committee of creditors (CoC) is looking to tweak the resolution plan for beleaguered Dewan Housing Finance Corporation (DHFL) so that unsecured deposit holders are repaid in full. The company mobilised Rs 5,500 crore as public deposits.
Sources told FE that EY is working on the proposal and would submit the report to CoC in a couple of days. The final decision may be taken in the CoC meeting next week. State Bank chairman Rajnish Kumar on Wednesday said the lenders will finalise the resolution plan for DHFL after the November 11 hearing at the Bombay High Court.
The current resolution plan proposes to pay unsecured fixed deposit holders in a staggered manner over 10 years. Unsecured public deposits payable till October 31 have been assumed to be paid with existing interest rates, while the balance are proposed to be restructured over 10 years with no interest, the company had disclosed in its resolution plan dated September 29.
DHFL had completely stopped making payment to deposit holders citing the Bombay High court's stay order on the same. The Bombay High Court had restrained the company from making payments to any of its secured/unsecured creditors, including payments to any fixed deposit holders on October 10.
Edelweiss AMC, Kotak Mahindra AMC, Axis Asset Management and Reliance AMC had moved the Bombay High Court seeking a direction to DHFL to disclose all its assets and liabilities and also to temporarily prevent it from making payments/disbursements to secured and unsecured creditors. The court is slated to hear the matter on November 11. High Court bars DHFL promoters from leaving country.
The Bombay High Court on Thursday restrained Dewan Housing Finance Corporation (DHFL) promoters Kapil and Dheeraj Wadhawan from leaving the country till the time a petition by 63 Moons is disposed of by the court.
Technology company 63 Moons Technologies moved the Bombay High Court against DHFL for recovery of dues worth Rs 200 crore against non-convertible debentures.
The company also sought directions from the court to ensure the promoters do not leave the country until the case is being heard. As per the counsel for 63 Moons, the company made the plea because it wanted the court to issue an appropriate direction to the promoters of Dewan Housing, lookout circulars against whom may lapse at any time. The counsel for DHFL promoters argued that Wadhawans may have to travel abroad to raise funds. However, the high court dismissed DHFL’s argument and ordered Kapil and Dheeraj Wadhawan not to leave the country till the time the case hearing continues.