DHFL lenders to meet on 20 February to discuss EoIs1 min read . Updated: 17 Feb 2020, 02:12 PM IST
- At the meeting, lenders will also take up evaluation criteria for bidders, latest status of financial claims
- On 16 January, lenders had eased the eligibility criteria for those seeking to purchase assets of DHFL
Mumbai: The committee of creditors (CoC) to bankrupt Dewan Housing Finance Corporation Ltd (DHFL) will meet on 20 February to discuss, among other issues, the expressions of interest received from prospective investors, said a person aware of the development.
At the meeting, lenders will also take up evaluation criteria for bidders, latest status of financial claims, updates from legal team and progress on the mortgage lender’s operations, said the person cited above.
In the last CoC meeting held on 16 January, lenders had eased the eligibility criteria for those seeking to purchase assets of the insolvent non-banking financial company (NBFC).
While the minimum net worth requirement of bidders was cut to ₹3,500 crore from ₹5,000 crore proposed by the Reserve Bank of India (RBI)-appointed administrator, the criteria for assets under management (AUM) and committed funds were lowered to ₹10,000 crore and ₹3,500 crore, respectively, from ₹12,000 crore and ₹5,000 crore.
DHFL’s AUM are at ₹1.19 trillion, of which ₹63,690 crore is under retail loans and the remaining in wholesale. The RBI-appointed administrator R Subramaniakumar has decided to segregate DHFL’s loan book into three groups--the first one comprises retail assets, investments and unsecured loans, the second consists of construction finance loans, mortgage loans, corporate loans, intercorporate deposits and pass-through certificates, and the third comprises loans to entities for Slum Rehabilitation Authority (SRA), Mumbai projects.
On 20 November, the RBI had superseded DHFL’s board and later referred the mortgage lender to the National Company Law Tribunal (NCLT). The central bank’s initiative was meant to secure the interests of creditors, including fixed deposit holders of DHFL and check any system-wide shock. DHFL is the first non bank to be referred to NCLT under new rules notified by the government on 15 November.