Wadhawan again raises concern over bids for DHFL by Piramal, Oaktree

New Delhi, Jan 4 : Raising concerns over the bids by Piramal Enterprises and US-based Oaktree for Dewan Housing Finance Corporation Ltd (DHFL), erstwhile promoter of the bankrupct NBFC, Kapil Wadhawan said that the bids are conditional and not qualified.
Noting that Piramal group has proposed a reverse merger of its company — Piramal Capital & Housing Finance Limited (PCHFL) with DHFL, Wadhawan, in a statement on Sunday said: “PCHFL itself had, just as DHFL, suffered immense liquidity crises in 2018.
However, it managed to survive by borrowing funds from SBI, LIC, Canadian pension fund CDPQ, IFC, Union Bank of India, IndusInd Bank, Bank of Baroda etc,” He further said that the asset quality of PCHFL has not been vetted to ascertain whether the merger of PCHFL with DHFL would be in the interest of entities.
Piramal’s resolution plan is founded on the reverse merger occurring successfully to ensure the Rs 10,000 crore of capital be infused into DHFL, which is essential for maintaining various regulatory ratios mandated by RBI apart from being required for the success of the resolution plan, he said.
“It is uncertain whether the merger would take place and in any event the merger may entail considerable delay which would further delay and complicate the resolution of DHFL.”