The American global asset management firm has cautioned against discrimination in the corporate insolvency resolution process (CRIP) due to its foreign origin.
In a letter to creditors of Dewan Housing Finance Limited (DHFL), Oaktree Capital has urged for fair treatment in the evaluation of its bid. The American global asset management firm has cautioned against discrimination in the corporate insolvency resolution process (CRIP) due to its foreign origin. The company highlighted that it is committed to investing in India and was invited to participate in the resolution process because of its track record.
However, Oaktree said that it has been subject of a sustained campaign to undermine its bid. "This has revolved around three main themes: the conditionality of the Oaktree bid, the legality of Oaktree as a foreign investor indirectly holding a majority stake in Pramerica Life Insurance Limited (PLIL) and Oaktree as a foreign investor representing an implementation risk."
DHFL has received bids from Piramal Capital and Adani Group, while another lender, a Hong Kong-based SC Lowy backed out of the race alleging unfair treatment by DHFL lenders.
Oaktree added that it has been asked to present an updated resolution plan on December 21, 2020, "to take into account comments and concerns of the CoC. We have been pleased to engage with the CoC and the Administrator over the weekend, and we look forward to submitting a refined bid today," the letter read.
"Oaktree is fully supportive of a fair and competitive process, but a fair and competitive process means that the winning bid should be decided on its merits. We are writing to you to share our concerns in the hope and expectation that this resolution process, into which all parties have invested so much time, energy, money and resources, will be concluded positively and in the correct manner," the company said.
First Published: IST