DHFL COC to meet on Monday to consider bids

New Delhi, Oct 25 : The DHFL Committee of Creditors (COC) stares at a 70 per cent haircut in the meeting on Monday as lenders to lose a whopping Rs 68,000 crore against the total admitted liabilities of Rs 95,000 crore.
Four bidders, Adani Group, Piramal Groip, US based Oaktree, and Hongkong based SC Lowy have submitted shockingly poor bids, as per banking sources.
It is learnt that the regulator is mulling scrapping of bidding process to let DHFL continue to operate under the RBI appointed administrator.
The bids received are far lower than the Fair Value (FV) and Liquidation Value (LV) arrived at by the independent valuers on behalf of the lenders.
Thee bids offer a very low recovery value – ranging between as low as Rs 75 crore to highest of only Rs 15,800 crore, banking sources said. The recovery rate from these bids for the lenders will be in the range of from less than 3 per cent to upto 16 per cent.
The Resolution Plan for DHFL provided for 3 options: Option 1: To acquire DHFL on as-is-where-is basis, Option 2: To acquire the Wholesale and SRA asset portfolio of the company and Option 3: To acquire Retail asset portfolio of the company.