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FD holders vote against DHFL resolution plan proposals

Surabhi Mumbai | Updated on January 16, 2021

Continuing their demand for full repayment of their investments, fixed deposit holders of Dewan Housing Finance Corporation Ltd (DHFL) voted against all the proposals as part of the resolution process.

Voting on the proposals by the Committee of Creditors ended on January 15.

Public depositors, who have a 6.18 per cent share in the voting mechanism, voted against all the proposals.

 

“We will continue to fight the case in the National Company Law Tribunal. We believe that voting against the proposals will strengthen our case,” said Vinay Kumar Mittal, a lead petitioner in the court on behalf of FD holders of DHFL.

The NCLT is hearing a petition of FD holders on DHFL dues and the next hearing is scheduled on January 20.

FD holders have been opposing the resolution plan as many of them would get negligible amount of their investments back.

Under the proposal for payout to FD holders and non-convertible debenture holders for DHFL, they will be divided into four categories based on the value of their admitted claims.

The first category of up to ₹2 lakh will get 100 per cent repayment of the principal under the resolution mechanism.

“The aggregate additional amounts to be distributed to the FD holders in Category 1 and secured NCD holders in Category 1 shall be paid in full to the extent of principal from upfront cash up to two per cent of the resolution plan payment with the intention of providing the maximum principal recovery to them basis amounts available,” said the proposal.

The second category is between ₹2 lakh and ₹5 lakh, followed by the third category of ₹5 lakh to ₹10 lakh and the fourth category would be of over ₹10 lakh.

The proposal has however, been approved by the CoC with about 87 per cent of votes in favour of it.

Piramal Capital and Housing Finance, which has emerged as the winning bidder for DHFL, is understood to have set aside funds for FD holders in its resolution plan.

Published on January 16, 2021

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