A day after Piramal Capital and Housing Finance Limited (PCHFL) received the National Company Law Tribunal’s (NCLT) approval to acquire Dewan Housing Finance Corporation Limited (DHFL) for Rs 37,250 crore, 63 Moons Technologies, a Mumbai-headquartered financial services company, has announced that it will challenge the NCLT order. The Mumbai-based company said the current resolution plan is "contrary to law" and “against the interest of all DHFL's creditors, including NCD (non-convertible debentures) holders.”
63 moons, which holds more than Rs 200 crore of NCDs of DHFL, had filed an application in NCLT-Mumbai seeking that the fraudulent transaction recovery benefit of approximately Rs 45,000 crore filed by DHFL administrator under Section 66 of IBC should come to creditors, including NCD holders who are the actual sufferers of the default, and not to the buyer of the company.
Notably, the DHFL administrator has filed applications for recovery of approximately Rs 45,000 crore under Section 66 of the Insolvency and Bankruptcy Code (IBC) against DHFL's promoters and other persons on account of their "fraud" against the creditors. According to 63 Moons, this amount must come to the defrauded parties, that is the creditors.
Piramal Capital has bid only for the current value of DHFL, which does not include the amount that was taken away from creditors "fraudulently."
Out of the Rs 37,250 crore that the Piramal Group has offered to DHFL’s creditors, Rs 12,700 crore will be upfront cash, Rs 3,000 crore will be interest income on DHFL’s books, and non-convertible debentures worth Rs 19,550 crore, to be repaid over 10 years.
(Edited by: By Shoma)
First Published: IST