InvestorQ : Why are the creditors of Dewan Housing going for a second round of bidding for the assets of DHFL?
diksha shah made post

Why are the creditors of Dewan Housing going for a second round of bidding for the assets of DHFL?

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2 months ago
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In the last few days, there has been a huge controversy over whether Adani bid should be permitted or not, considering that it had come after the bids closed, allegedly. That has been set to rest with the decision of the Committee of Creditors or COC to rebid for DHFL.

In the midst of the ongoing fracas among potential bidders, more than 66% members which is the required quorum for re-bidding, of the COC voted in favour of a fourth round of bidding for Dewan Housing Finance Ltd.

Now, potential bidders for DHFL can submit a fresh bid before the 14th of December or they can also opt to continue their previous bids submitted on 17 November. It may be recollected that Adani had allegedly submitted an unsolicited bid for the entire DHFL business as against originally bidding for the wholesale and SRA book of DHFL only.

While the other bidders like Piramal Enterprises, SC Lowy and Oaktree had objected, Adani Enterprises has maintained that the final bid was submitted before the stipulated time and hence was a valid bid. Also, the COC would be primarily interested in getting the best price as that would reduce their haircut on the loans to the best extent possible.

In the meanwhile, the 3 original bidders consisting of Piramal Group, Oaktree Capital and SC Lowy threatened legal action if the COC went ahead with Adani’s new bid. However, there is a precedent in the Binani Cement case where Grasim was allowed to bid a substantially higher amount than Dalmia as it was more favorable to the COC.

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