NCLAT agrees to hear 63 Moons Technologies petition on DHFL

Our Bureau Mumbai | Updated on July 06, 2021

Issues notice to CoC, administrator and PCHL

The National Company Law Appellate Tribunal (NCLAT) has agreed to hear the petition by 63 Moons Technologies, challenging some of the provisions of the resolution plan for Dewan Housing Finance Corporation Ltd (DHFL).

The NCLAT has refused to stay the resolution of DHFL but has issued notices to the Committee of Creditors (CoC), the administrator and Piramal Capital and Housing Finance Ltd (PCHL).

The National Company Law Tribunal had on June 7 approved the Piramal Group’s ₹37,250 crore resolution plan for mortgage financier DHFL, subject to certain conditions.

63 Moons holds over ₹200 crore of NCDs of DHFL. It had earlier said the current resolution plan is disappointing for NCD holders.

“Other members of the Committee of Creditors, who comprise mainly of banks, have recourse to personal guarantees of promoters whereas NCD holders do not have any such contractual recourse,” it further said, adding that NCD holders will be left high and dry with haircut of 65 per cent to 75 per cent if in future such recoveries from fraudulent transactions are allowed to pass through to the resolution applicants, instead of the creditors,” it had said at the time.

Published on July 06, 2021

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