Deadline for DHFL resolution bids may be extended again

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Deadline for DHFL resolution bids may be extended again

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The deadline for submitting resolution plans for debt-ridden Dewan Housing Finance Corporation may be extended again, multiple sources told CNBC-TV18. The troubled mortgage lender is now facing claims of over Rs 86,800 crores in the bankruptcy court.

The Committee of Creditors (CoC) for DHFL had initially set the deadline for April 16. That was extended many times because of the lockdown, and the latest deadline is June 9, sources familiar with the process said.“Physical management meetings, site visits to DHFL branches, and other due diligence formalities have been affected by the lockdown,” said a source.

Many prospective bidders have sought more time to put in bids, as they have to first stabilise their own businesses, disrupted by the COVID-19 pandemic.The Committee of Creditors will vote on a proposal to extend the deadline by up to 45 days beyond June 9, another source said.

CNBC-TV18 had reported earlier in February that 24 suitors had submitted Expressions of Interest (EOI), and the majority of them have been shortlisted to submit final bids.

During the last CoC meeting on May 12, the RBI-appointed administrator said that DHFL was not undertaking any new business during the lockdown, and collections declined during March as well as April, a person present in the meeting told CNBC-TV18.

The lenders were also informed that DHFL had granted the RBI-backed moratorium to almost 35 percent of its customers. Also, DHFL is re-negotiating rentals with its landlords and hopes to save Rs 15 crore a year, said the person quoted above.DHFL is expected to announce its March quarter numbers by the first week of June, sources said.

DHFL is the first financial services company to be admitted into NCLT under the Insolvency and Bankruptcy Code for resolution under Section 227 of the Insolvency & Bankruptcy Code.

Source- CNBC-TV18