In a relief to Piramal Group, the National Company Law Appellate Tribunal (NCLAT) has stayed the NCLT order directing DHFL's Committee of Creditors (CoC) to consider the settlement of its former promoter Kapil Wadhawan.
According to the lenders, allowing Wadhawan's proposal will destroy the fabric of the Insolvency and Bankruptcy Code.
On May 19, the Mumbai-bench of the National Company Law Tribunal (NCLT) had asked the lenders of the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) to consider Wadhawan's settlement offer the settlement offer of former promoter Kapil Wadhawan.
The tribunal had given the committee of creditors a period of 10 days to consider his offer and come back to the court with its decision by May 31.
Wadhawan had filed a petition at the NCLT, and the order was reserved since January 15. He offered to repay 100 percent principal amount to all the creditors. In his revised proposal of Rs 91,158 crore for the creditors, Wadhawan promised to make an upfront payment of Rs 9,000 crore.
He had offered to service Rs 31,000 crore debt in 7 years at 8.5 percent per annum. Apart from that, he has offered to repay Rs 12,000 crore within a period of 7 years at 11.5 percent per annum, following a one-year moratorium.
The plan also includes repayment of Rs 18,000 crore in 5 years at 11 percent per annum, following a 5-year moratorium. While Rs 5,000 crore will be converted to equity, Rs 16,158 crore will be converted into zero coupon bonds as per the proposal.
Wadhawan had also stressed on to pay 100 percent to FD and NCD holders all the time.
Wadhawan in his petition had raised concerns over the bids by Piramal Enterprises and the other bidders.
Piramal Group turned out to the successful bidder for the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) and the Reserve Bank of India (RBI) has already approved the takeover.