InvestorQ : Why has 63 Moons moved the NCLT in the DHFL case?
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Why has 63 Moons moved the NCLT in the DHFL case?

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Rashi Mehra answered.
2 months ago
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63 Moons Technologies, formerly known as Financial Technologies, has moved the NCLT to ensure that the recovery from DHFL is distributed equitably among all creditors. Normally, unsecured debenture holders tend to get a raw deal, as the banks take away the cream of the settlement. 63 Moons holds over Rs.200 crore worth NCDs issued by DHFL.

For now, the NCLT has adjourned the application by 63 Moons for hearing on January 13. The COC or the Committee of Creditors have opposed the application by 63 Moons on the grounds that the bank lenders have recourse to personal guarantees of the DHFL promoters while NCD holders do not have such recourse.

Currently, Oaktree Capital, Piramal Enterprises and Adani Group have submitted their final bids and the final decision will be taken after evaluation on 14 January. Both Piramal and Oaktree have offered around Rs.38,000 crore as a one-time settlement. That still means that lenders and creditors have to take an overall haircut of close to 55-60%.

Non bank creditors could get the flak, as has happened in most NCLT cases. While operational creditors have got the rough edge, it is the unsecured creditors who have ended up forfeiting their entire investments in most cases. Meanwhile, 63 Moons has also filed for wilful fraud against the Wadhawan Brothers of Dewan Housing.

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