Kapil Wadhawan submits proposal to repay DHFL creditors – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/banking/finance/kapil-wadhawan-submits-proposal-to-repay-dhfl-creditors/articleshow/79723430.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis

The proposal envisages complete repayment to all creditors within a period of 7-8 years, with upfront cash payment of Rs 9000 crores. This amount can be used to repay in full the outstanding of small investors, as per the plan.

DHFLNSE -4.92 % erstwhile promoter Kapil Wadhawan has sent a proposal to repay the entire outstanding dues of the mortgage lender. Wadhawan in his proposal had claimed that lenders will not have to take a haircut as per his plan. This proposal has been sent to the creditors of DHFL, to the DHFL administrator, the prime minister’s office, the ministry of corporate affairs and the finance ministry.

The proposal provides for a full repayment of 100% principal to all creditors within 7-8 years with an upfront payment of Rs. 9,000 crores.

“My proposal is workable and in fact, were I to be given access to the information and data of the company, I would be in a position to further improve upon the offer that I have made,” Wadhawan has said in a letter.

“If the bids received for DHFL continue to be as low as they were previously, I would request the committee of creditors to consider my settlement proposal instead rather than permit DHFL to be sold for a song,” he adds.

According to the proposal, Wadhawan claims that he would repay the principal outstanding amount due till September quarter.

The proposal envisages complete repayment to all creditors within a period of 7-8 years, with upfront cash payment of Rs 9000 crores. This amount can be used to repay in full the outstanding of small investors, as per the plan.

The proposal considers the entire on-balance sheet loan book considered for recovery of Rs 61000 crores in net of provisions and fair value adjusted. The erstwhile promoter in his plan has claimed that focus only on retail business will ensure completion of stalled projects for recovery of dues from borrowers in wholesale business.

The committee of creditors are currently conducting auction of the DHFL loan book and have so far received fresh bids from the Adani Groupthe Piramal Group and Oaktree Capital.

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