DHFL lenders file insolvency case

THE UNION BANK OF INDIA HAS FILED A CASE ON BEHALF OF ALL LENDERS AGAINST ENTIRE ₹38K CR EXPOSURE

MUMBAI: Lenders to Dewan Housing Finance Corp. Ltd have moved the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate personal insolvency proceedings against erstwhile promoters Kapil and Dheeraj Wadhawan, according to a person aware of the matter.

Union Bank of India has filed the case on behalf of all lenders against the entire exposure of ₹38,000 crore. Alvarez & Marsal has been appointed the resolution professional (RP) in this matter. The move comes at a time when the resolution process for the bankrupt mortgage financier is underway, and lenders have called for a fresh round of bidding from existing bidders for the fourth time.

“The process to initiate insolvency proceedings started two months ago, and the case was filed on Tuesday evening. The RP can invite other creditors to seek claims on their dues,” said the person cited earlier. DHFL is facing claims of ₹87,031 crore from financial creditors, including ₹39,000 crore from banks.

In October, the Wadhawans had proposed to pay more than ₹43,000 crore to all creditors without any haircut.

Last week Mint reported that Wadhawan had approached NCLT against the mortgage lender’s administrator and the committee of creditors (CoC) over the bids made by the suitors seeking to take over its assets. He also requested the NCLT that he should be allowed to be a part of the CoC meetings as his plea to the administrator has not worked. In an application made on November 24, Wadhawan urged that the tribunal should not allow the bids received from the four bidders, terming their offers as “absurd”.