RBI Approves DHFL Resolution Plan:- The Reserve Bank of India cleared the acquisition of the Diwan Housing Finance Corporation by Piramal Capital and Housing Finance. The group is pipped the USA-based management firm Oaktree after they placed a bid which is higher than the company last month. "We understand that the RBI has approved the DHFL resolution plan from Piramal Capital and Housing Finance, submitted by the CoC" told Piramal Group in a statement. The Indian public sector banks voted in favour of Piramal Group and their debt resolution plan for DHFL and they have paved way to rescue the housing finance company that is left bankrupt.
DHFL was sent to bankruptcy court in the year 2019 in December of the debt worth Rs 90,000 crores. The promoters of the company are residing in jail and are facing the charges of money laundering. Piramal had plans of recovering Rs 37,250 crores in the next five years for the lenders of DHFL through fixed deposit holders, provident funds and foreign noteholders. Piramal will pay Rs 12,700 crores as upfront cash to the lenders. The existing shareholders of DHFL will get no value. Adani Group was the third bidder but the bid wasn't considered as it was too low.
Oaktree offered an additional Rs 1700 crores after the deadline.