Wadhawan writes fresh letter to DHFL Administrator

Highlighting the low value of the revised bids received, jailed promoter of Dewan Housing Finance Corporation Ltd (DHFL) has once again written to the company’s Administrator, asking to be allowed to attend the next meeting of the Committee of Creditors.

Stressing that DHFL continues to have considerable value, Wadhawan, in his letter, has said that the bids received by DHFL are “abysmally low” and will only result in massive loss of public money and substantially benefit a few if such bids are accepted.

“Just the cash on hand, investments and real estate of DHFL as a company, is above ₹16,000 crore without even considering the value of the retail or wholesale portfolio. Any offer of ₹20,000 crore to ₹25,000 crore for the entire company is absurd, and will cause a massive los of public money which is not warranted,” he has written, stressing that DHFL is very much a going concern.

He has instead proposed that the resolution plan by the promoters in September 2019 for 100 per cent repayment of principal amounts to all creditors without any haircut is still possible as such recovery is possible.

“As an added incentive, I am also willing for all creditors, including the NCD and fixed deposit holders, to convert part of their debt into equity so as to enjoy the equity upside they will get once the company is revived and revitalised and the company commences business as normal,” Wadhawan has written in his latest later to DHFL Administrator, R Subramaniakumar.

His letter came after fresh bids have been submitted by four investors, with the revised offer now being higher at about ₹33,000 crore.

Highest bid

Just four entities – Oaktree Capital, SC Lowy, Adani Group and Piramal Capital and Housing Finance – have submitted bids for DHFL with the highest initial bid at about ₹28,000 crore by Oaktree.

In his latest letter, Wadhawan has also denied all allegations cast on him, and has said he expected a more positive response from the Administrator’s team.

“I hope with the requirement of following all technicalities, a positive, commercial and pragmatic approach will be adopted for the benefit of all stakeholders,” he has written.

Wadhawan, in a nine page letter dated October 17 to the DHFL Administrator, had offered to settle all claims of the company and had proposed that he be allowed to transfer the right, title and interest in these projects to ensure a complete resolution of DHFL. He had also pegged the total estimated profit from about 10 projects of DHFL at about to ₹44,000 crore.

His offer was, however, rejected by the Administrator at that time on the grounds that Wadhawan had inflated the valuations of the properties and is trying to derail the resolution process.

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