Many of the FD and NCD holders have expressed concerns about the transfer of funds, pointing out that their petitions challenging the payout of funds are pending in court
IANS
The National Company Law Appellate Tribunal (NCLAT) will hear pleas by fixed deposit and NCD holders of Dewan Housing Finance Corp Ltd (DHFL) and it’s former promoter Kapil Wadhawan against the approval of Piramal Capital and Housing’s resolution plan for the bankrupt NBFC.
In June, the Mumbai bench of the National Company Law Tribunal (NCLT) approved the resolution plan of Piramal Capital and Housing Finance Limited. However, the order was challenged by Wadhawan at the appellate tribunal.
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Although, DHFL has reportedly sent messages to fixed deposit and NCD holders, asking them to update their bank account and contact details, many of the FD and NCD holders have expressed concerns about the transfer of funds, pointing out that their petitions challenging the payout of funds are pending in court.
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FD holders have also appealed in the Bombay High Court. All these cases will be heard at the NCLAT court on Wednesday.
Under the current resolution plan, FD holders will get about Rs 1,241 crore, against their admitted claims of about Rs 5,400 crore.
NCD holders are also likely to get lower than the admitted claims and as such FD and NCD holders have been against the Piramal resolution plan.
Wadhawan, on the other hand has been fighting against the resolution plans which offer “high haircuts”. He has been time and again offering his revolution plan which assures repayment of 100 per cent principal amount to all the creditors.
In his revised proposal of Rs 91,158 crore for the creditors, Wadhawan has promised to make an upfront payment of Rs 9,000 crore and has also proposed to service Rs 31,000 crore debt in seven years at 8.5 per cent per annum.
According to Wadhawan, the valuation of DHFL by Piramal did not do justice as the company has huge cash flow and assets.
DHFL was the first to go for insolvency under the Insolvency and Bankruptcy Code.
The Rs 37,250 crore resolution plan of Piramal Group for DHFL includes an upfront cash component of Rs 12,500 crore and a deferred component of Rs 19,550 crore.
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