Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Corporation (DHFL), moved the National Company Law Tribunal (NCLT) earlier this week, seeking the tribunal’s direction to the administrator and committee of creditors (CoC) to consider the package the then management had prepared for the beleaguered company.
The offer, he claimed, was in accordance with the June 7 circular of the Reserve Bank of India (RBI).
Wadhawan also sought the tribunal’s permission to assist the CoC on the bids being received. And, pending the hearing and final disposal of the application, Wadhawn sought deferral of the consideration of bids received for DHFL.
He also asked the tribunal to submit the resolution plan presented by the erstwhile management to an independent expert appointed by the tribunal itself along with the bids received. The independent expert then could give its opinion on the most appropriate plan keeping in mind the interest of all stakeholders and public at large.
Wadhawan is of the view that the bidders are essentially seeking to take over the company, with barely any investment, whilst offering a massive haircut on the amounts due to the various creditors of DHFL.
Prior to filing the application, Wadhawan had written to the administrator drawing attention to the real value of the various properties in respect of which bids may be invited.
In the second letter to the administrator, Wadhawan said the bids that came in for DHFL do not do justice to DHFL and its stakeholders.
Wadhawan alleged that since the cash reserves of DHFL were increasing every month over and above the available cash reserves of Rs 12,000 crore, the upfront payment being made by the bidders would be even lower than the cash reserves available with DHFL, when the company is handed over to the bidders.
In July 2019, lenders to DHFL had signed an inter-creditor agreement in accordance with June 7 circular of RBI. In the application, Wadhawan has said the resolution was approved in principle by all the banks and the National Housing Bank.