Lawstreet Journal

Oaktree Hints at Legal Action Over 'Misrepresentation' of DHFL Offer After Piramal Cap Emerges as Top Bidder

Lawstreet Journal 30 Dec 2020 1:44am

Image courtesy: Lawstreet Journal Business Oaktree Hints at Legal Action Over 'Misrepresentation' of DHFL Offer After Piramal Cap Emerges as Top Bidder

Ahead of the crucial three-week long voting to decide on the new owner of troubled lender Dewan Housing Fiance (DHFL),U.S.-based stressed assetbuyer Oaktree Capital, one of the bidders for DHFL, in a letter to the Committee of Creditors (CoC), has said that its offer for the troubled housing finance company is being consistently misrepresented and that evaluation of its financial proposals based on incorrect information may be subject to judicial, administrative and investigative review.

Oaktree has written to lenders and the RBI hinting at legal action if its revised bid is not considered. This comes after Piramal Capital on 24 December 2020 appraised its total offer for DHFL to Rs 38,250 crore, Rs 1,832 crore higher than Oaktree's commitment of Rs 36,418 crore.

According to Oaktree, in spite of presenting a bid that offers maximum value for all stakeholders, there appears to be a consistent campaign to misrepresent information on its proposals.

Oaktree and Piramal group are in a close race for DHFL. The Adani group is also one of the bidders.

Thrust of  Oaktree letter read as follows:

  • In terms of total recovery being offered to Financial Creditors as well as net present value, Oaktree’s financial proposal is clearly superior to all other PRAs.
  • Information is not only being presented in an incomplete and inaccurate manner but also in order to discredit Oaktree’s bid and favour the Second Highest Bidder.
  • Its bid's net present value is Rs 36,418 crore, higher than the 34,966-crore bid of the second-highest bidder.
  • If Oaktree’s bid were to be evaluated on the… Continue Reading...

    Tagged: DHFL  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0

C2RMTo Know More

Something Awesome Is In The Work









Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail