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finance | IST

DHFL bids: Piramal, Oaktree, Lowy threaten walkout over Adani proposal

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Much drama unfolded at the Dewan Housing Finance Ltd (DHLFL) creditors committee meeting tonight as suitors threatened to walk out of the process if Adani Group’s surprise last minute offer to acquire the entire company was considered, three people aware of the development told CNBC-TV18.

Much drama unfolded at the Dewan Housing Finance Ltd (DHFL) creditors committee meeting tonight as suitors threatened to walk out of the process if Adani Group’s surprise last minute offer to acquire the entire company was considered, three people aware of the development told CNBC-TV18.
In three separate e-mails sent to the Administrator and lenders to DHFL ahead of the lenders meeting in the evening, Piramal Group, Oaktree Capital and SC Lowy said they would not participate in the bidding process and withdraw whatever they had offered if Adani Group’s ‘unsolicited’ offer was allowed, one of the people quoted above said.
CNBC-TV18 had earlier reported that DHFL’s lenders would meet today to review all offers and may consider inviting revised bids from all after Adani offered to buy all of DHFL’s assets for Rs 31,250 crores. Piramal Group had cried foul over the move, and termed Adani’s offer ‘suspicious’ and mean to ‘defeat and vitiate’ the efforts of other bidders.
While lenders had initially seemed inclined to accept the new offer from Adani which offers them the highest recovery of all, the idea of all bidders backing out from the process has once again left them in a bind. As a result, the creditors committee decided not to open any bids, and defer the voting process until December 3 at least, said another person quoted earlier.
The decision was also taken after the Mumbai bench of NCLT, while hearing an older case filed by the National Housing Bank in relation to the repayment of a re-financing loan by DHFL, asked the lenders to not vote on any resolution plans until the next hearing on December 3.
The legal counsel representing the Committee of Creditors- Cyril Amarchand Mangaldas (CAM) group- agreed to hold off voting on bids until the next hearing, and did not insist on the resolution process being allowed to proceed, much to the surprise of some of the creditors, CNBC-TV18 learnt.
However, after the NCLT order staying any voting for the time being, lenders have decided to utilise the time to reach out to the three suitors about not withdrawing from the process yet, said one of the executives quoted earlier. The decision on accepting or rejecting the new offer made by Adani Group is also expected to be taken before the voting starts in December.
CNBC-TV18 had earlier reported that Oaktree Capital, Piramal Group, Adani Properties & SC Lowy had submitted revised offers on November 9. Oaktree Capital had offered Rs 31,000 crore for the entire book, Piramal Rs 26,500 crore for the retail book, and SC Lowy Rs 2300 crore for wholesale assets.