DHFL hits the roof after CoC approves Piramal's resolution plan

Dewan Housing Finance Corporation (DHFL) hit an upper circuit of 5% at Rs 27.50 after the Committee of Creditors (CoC) of the company approved the resolution plan submitted by Piramal Capital and Housing Finance.

In a regulatory filing made on Sunday (17 January 2021), the mortgage lender said that the e-voting on resolutions pursuant to the 18th meeting of the Committee of Creditors of the company (CoC) concluded on 15 January 2021 and the resolution plan submitted by Piramal Capital and Housing Finance was duly approved by CoC by majority voting, as the successful resolution plan.

As per reports, Piramal's bid received 94% votes as compared to 45% for the US-based Oaktree Capital.

In November 2019, the Reserve Bank referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

DHFL was the first finance company to be referred to NCLT by the RBI using special powers under Section 227 of the IBC. Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).

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