DHFL: 63 moons to challenge NCLT's approval for Piramal's resolution plan

63 moons believes that the resolution plan is against interest of all DHFL's creditors, including NCD holders

63 moons technologies, which holds around Rs 200 crore worth of non-convertible debentures (NCDs) of Dewan Housing Finance Limited (DHFL), is planning to challenge the National Company Law Tribunal’s (NCLT) order approving the Piramal Group’s resolution plan for the beleaguered home financier.

“63 moons believes that the current resolution plan is contrary to law and against the interest of all DHFL's creditors including NCD holders," the company said in a statement. 

The company is of the view that the amount recovered from the erstwhile promoters of DHFL and other parties under Section 66 of IBC should come to the creditors of DHFL. Instead, the company alleged, Piramal Group’s plan benefits itself, allowing it to reap the benefits of recoveries from the promoters. 

The RBI-appointed administrator has filed applications or recovery of fraudulent transactions worth almost Rs 45,000 crore under Section 66 of the Insolvency and Bankruptcy Code (IBC). 

“Piramal has bid only for the current value of DHFL which does not include these amounts that were taken away fraudulently. Hence, all the more reason, the recoveries must come to the creditors only," the company said. 

Further, it has alleged that the NCD holders of DHFL stand to lose the most from Piramal Group’s resolution plan as the banks have recourse in the form of personal guarantees of promoters but the NCD holders do not have any such recourse.

“NCD holders will be left high and dry with a massive 65 -75 per cent haircut if in future such recoveries from fraudulent transactions are allowed to pass through to the resolution applicants, instead of the creditors," the Jignesh Shah-led company said.