Kapil Wadhawan, the former promoter of Dewan Housing Finance Corporation Ltd (DHFL), has sent a fresh missive to the administrator of the troubled mortgage financier, underlining that his proposal to fully repay all creditors is the best compared to the revised bids submitted for the resolution, and that it should be considered.

“My settlement proposal dated December 13, 2020 provides for repayment of ₹91,158 crore to all the lenders as opposed to the next highest bid of only a sum of ₹36,646 crore,” he has written in a December 19 letter to DHFL administrator R Subramaniakumar, pointing out that the objective of the Insolvency and Bankruptcy Code (IBC) is maximisation of value for all stakeholders.

Also read: DHFL: Oaktree, Piramal bids to go down to the wire

Upfront payment

Wadhawan said his settlement proposal offers an upfront payment of ₹9,000 crore, along with repayment of an additional amount of ₹76,814 crore over a period of seven to eight years and conversion of debt to equity of ₹4,970 crore.

“In other words, my proposal seeks to pay a total sum of ₹91,158 crore (constituting 100 per cent of the principal that is due to the lenders) as opposed to the resolution applicants who have only offered upfront payments ranging between ₹10,000 crore and ₹12,000 crore and a deferred payment ranging between ₹19,000 crore and ₹21,000 crore payable over a period of seven to 10 years,” he said.

Also read: Oaktree, Piramal, Adani submit fresh bids for DHFL

Revised bids

In the revised bids submitted for DHFL, Oaktree Capital is understood to be the highest bidder at about ₹36,700 crore while Piramal has put in a bid for ₹35,500 crore. Adani Group has offered ₹33,100 crore.

Wadhawan said he is also willing to agree on a process for the sale of DHFL Pramerica Life Insurance (DPLI) and any amount received from the sale of DPLI would be utilised entirely for the purpose of repayment to lenders.

“This, I believe, would substantially increase the upfront amount that I am offering for repayment to all the lenders of DHFL,” he said.

He has also promised to pay for the entire corporate insolvency resolution process cost, either from his own sources or from the further collections that have been made by DHFL after September 30, 2020.

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