‘Majority of FD holders opposed to proposal’
Lenders to Dewan Housing Finance Corporation have begun voting on new proposals for redistribution of funds to small investors including fixed deposit and non-convertible debenture (NCD)-holders as well as pension funds.
According to the proposal put forward for voting, the entire admitted claim of ₹39 crore of Army Group Insurance Fund, ₹72.93 crore of Air Force Group Insurance Society and ₹2.54 crore of Navy Children School will be paid fully in cash.
Further, it has also been proposed that all fixed deposit holders will be paid additional amounts in cash in order to ensure that the entire amount paid to them is about 40 per cent of the admitted claims, similar to the recovery amount of the secured financial creditors.
Unsecured NCD holders have been categorised based on their investments into four segments: up to ₹2 lakh, between ₹2,00,001 and ₹5 lakh, between ₹5,00,001 and ₹10 lakh, and those above ₹10 lakh. Unsecured NCD holders with investments up to ₹10 lakh will be repaid 40 per cent of the admitted claims like in the case of fixed deposit holders.
Since all secured NCD creditors have already received about 40 per cent recovery of admitted claims, no fresh adjustments are being proposed. However, both the NCD holders and the fixed deposit investors of DHFL continue to be unhappy with the proposals.
“An overwhelming majority of the fixed deposit holders are opposed to the redistribution proposal. We will be filing a petition in the National Company Law Appellate Tribunal soon,” said Vinay Kumar Mittal, a lead petitioner in the court on behalf of the FD holders of DHFL.
NCD holders up to ₹10 lakh believe that their repayment under the new proposal will be lower than before. The total outgo for lenders of DHFL on these proposals would be ₹1,853.21 crore. Voting will end on the evening of June 22.
The NCLT, while approving the resolution plan for DHFL on June 7, had asked the Committee of Creditors to reconsider the distribution of funds to fixed deposit holders and provident funds within two weeks, noting that they had deposited their hard-earned savings and are now facing difficulties due to the Covid-19 pandemic and job losses.