The Committee of Creditors of Dewan Housing Finance Corporation Ltd (DHFL) has initiated a fresh round of voting on a proposed new distribution mechanism.
Under the new proposal, unsecured financial creditors will be paid 40 per cent of their respective admitted claims, similar to the recovery of the secured financial creditors
The development comes after the National Company Law Tribunal held that the prayer sought by Axis Bank, YES Bank and L&T Finance to this end should be merged with the Resolution Plan Approval Order. It had also directed the Committee of Creditors of DHFL “to reconsider the distribution mechanism” for the applicants “as per its commercial wisdom”.
Sources said the Committee of Creditors met on July 5 to discuss the proposal. All other provisions of the original redistribution plan are the same.
“Between the approved distribution mechanism and the current proposed distribution mechanism, the incremental contribution by large secured FCs will be about ₹1,370 crore which is 3.64 per cent of the Resolution Plan Value,” said the proposal.
The recovery for fixed deposit holders would remain at about 23 per cent. They are expected to vote against the fresh proposal on the distribution mechanism.