DHFL resolution extended till Jan 5 Lenders ask bidders to further sweeten offers

The National Company Law Tribunal today granted an extension of 90 days till Jan 5 for completing the corporate insolvency resolution process of Dewan Housing Finance Corp Ltd.

It also excluded the period of nationwide lockdown and the extended one in Maharashtra--from Mar 25 to Jul 31--from the resolution process period.

The order came on the back of a plea by R. Subramaniakumar, the administrator for the beleaguered company, that the committee of creditors of the company, at their fifth meeting held in May, had approved the 90-day extension. He sought the extension till Jan 5 on grounds of an extended lockdown in Maharashtra.

Initially, the period of the resolution process was to expire on May 31 but the last date was pushed back by 129 days to Oct 7, through a special provision by the Insolvency and Bankruptcy Board, due to the lockdown imposed by the Centre to curb the spread of coronavirus.

Recently, the resolution professional for Dewan Housing had received bids from Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy to either pick stake in the company or buy out its stressed

Not satisfied with the bids received, lenders of Dewan Housing Finance (DHFL) have asked the four suitors, including Adani Group and Piramal Enterprises, to come up with improved offers for the beleaguered firm in the next few days.

According to sources, lenders have given time till October 31 to bidders to further sweeten their offers, failing which they will decide on next course of action. Earlier this month, Dewan Housing Finance Corporation Ltd (DHFL) had received four bids for either picking up stake in the company or buying out assets.

assets.

Today shares of the company ended 4.7% lower at 15.10 rupees on the National Stock Exchange.