Wadhawan approaches RBI, CoC with revised offer for DHFL

DHFL posts consolidated net loss of Rs 13,095cr in Q3FY21

New Delhi: In a letter to RBI Governor Shaktikanta Das, DHFL administrator R. Subramaniakumar and the Committee of Creditors (CoC), the erstwhile promoter of the bankrupt NBFC said that he would make an upfront payment of Rs 9,000 crore in cash and Rs 31,000 crore will be paid within a period of seven years in equal annual instalments with 8.5 per cent per annum interest.

As per the revised proposal, Rs 12,000 crore will be repaid within a period of seven years in equal annual instalments, following a one-year moratorium with 11 per cent interest after two years of interest moratorium.

A sum of Rs 18,000 crore will be repaid within a period of five years in equal annual instalments, following a five-year moratorium with 11 per cent per annum interest.

Further Rs 5,000 crore will be converted to equity, as per the proposal.

Wadhawan also said that Rs 16,158 crore will be converted into zero coupon bonds and can be appropriately hived off to an Asset Reconstruction Company (ARC) and can be recovered through the ARC in order to preserve the debt-equity ratio of DHFL.

A portion of the bonds may also be tied to specific projects and also from excess cash flows following the servicing all lenders, based on agreed parameters of thresholds, he said in his letter.

“The utilisation of cash generation from September 30, 2020 upto the date of the restructuring could also be discussed and agreed upon in keeping with the broad principles above,” he said.

Wadhawan wrote: “You will appreciate that the alternate proposal that I have now made is significantly better than the bids made by any of the bidders by a wide margin. It is apparent that the bidders are offering no real value for the wholesale book and are seeking to retain for themselves the profits that they will earn through further retail lending.”

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