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Can improve DHFL offer, forfeit deposit of those against recoveries: Adani

Mining conglomerates off the streets of billionaire Gautam Adani have indicated that the collapsed housing lender could improve on its Rs 33,000 crore takeover offer for DHFL and seize the bidders’ deposits questioning the maximum recovery of public funds. Has demanded to do.

In an email written to the administrator, which is running DHFL auctions as part of the insolvency process, Adani Group said that it has followed this process diligently and its “intention is always to provide maximum value to all stakeholders and unconditionally At the same time ensuring a quick consumption of the process “.

In the email, uploaded to the DHFL data room and viewed by PTI, the Adani Group said it was resorting to media sensational issues aimed at preventing price maximization for lenders and depositors to some bidders.

Four units – Adani Group, Piramal Group, US-based asset management company Oaktree Capital Management and SC Lowy – submitted bids for DHFL in October, but the lenders, which are being auctioned to DHFL for recovery of unpaid debts, are Wanted the litigants to modify their bids. The original proposals were few.

The Adani Group, which initially bid only for DHFL’s Wholesale and Slum Rehabilitation Authority (SRA) portfolio, paid a total of Rs 30,000 crore and Rs 3,000 crore in the revised proposal submitted on November 17 for the entire book. . The said the consortia at the lenders.

It was offered over Rs 28,300 crore, submitted by Oaktree, the said, adding that the US firm’s conditional bid was underlined that it would refund Rs 1,000 crore on insurance claims.

Piramal cited only Rs 23,500 crore for DHFL’s retail portfolio while Hong Kong-based SC Lowy bid Rs 2,350 crore for SRA.

Shortly thereafter, rival bidders cried out on Adani’s bid, stating that the group submitted the bid well ahead of the deadline and that it could not expand on its original plan.

The said that the three rival bidders disqualified Adani.

In a November 22 email, the Adani Group stated that it had originally placed in an expression of interest or EOI for Options 1 and 2 (part of the full book and portfolio).

It said that the October bid was only for the wholesale and SRA assets of DHFL as it was expected that it would complete the deal with Piramal Group (Piramal Group bid only for retail assets).

But at the opening of bids on 9 November, Adani did not reflect the value of the company to the bids placed by rivals and decided to bid for the entire book.

Adani has cited 4.2.6 and read 7.3 (a) read with clause 3.15.22 (b) of the bidding process document and stated that it is “in accordance with the bidding process” and that “any resolution is the object of the applicant”. But there is no right “.

In addition, the Committee of Creditors (COC) and Administrators are obliged to perform duties, resulting in price maximization.

The Adani group said rival bidders formed the cartel and some of them threatened to exit the auction, a “tremendous” means of damaging the bidding process.

The bidding process provides for the Administrator / COC to “forfeit the earnest of such resolution applicant” who “directly or indirectly engages in coercive practice and / or restrictive practice”.

“We reiterate that our intention has always been to provide unconditional offers and potential value maximization for all stakeholders and at the same time ensure a speedy consumption of the process,” Adani wrote. “We are committed to further improving our proposal when revised proposals are invited.”

A person close to the situation said that it was surprising that when Adani submitted a letter on 12 November stating that they would bid for option 1, the administrator in his email communication to the bidders on 13 November Invite bids, as they only invite bids for those parts. Was originally bid for?

More so when the bidding process clearly provides that the bidder can submit an offer on any dance. It appears they were unwilling to entertain the Adani proposal, even if it appears to be the highest offer, the person said.

Adani further noted that some bidders have formed a cartel aimed at restricting a full and fair contest in the resolution proposal process.

Bidding clause of. According to the lender and administrator, such resolution is within their rights to deposit the earnest money of the applicants.

Adani’s offer is to pay Rs 11,000 crore upfront cash and another Rs 3,000 for Rs 19,000 crore.

It has also reiterated that it is given unconditionally without any restriction.

Surprisingly, the Adani email was not mentioned at the COC meeting by the administrator – but was later uploaded to the data room.

A loan in the Binani Cement acquisition said, a late bid by UltraTech was not only entertained by lenders, but was also upheld by the Supreme Court.

Former DHFL promoter Kapil Wadhawan has filed an application in NCLT stating that Piramal and Oaktree’s proposals do not reflect the true value of the company and they are trying to get the company free of cost with minimal investment for themselves.

In the email, the Adani Group said, its bid was submitted before 10 am on November 17 and the bid was according to the document.

It went on to cite the relevant section of the bid document that gave the administrator freedom to examine the bid received at any stage of the proposal plan submission process and rival bidders have no right to object to such submission Was.

In November last year, the Reserve Bank referred the National Company Law Tribunal (NCLT) to the third largest pure-play mortgage lender, DHFL, for insolvency proceedings.

As of July 2019, the company owes Rs 83,873 crore to banks, National Housing Board, mutual funds and bondholders.

(Only the headline and picture of this report have been reworked by Business Standard employees; the rest of the content is auto-generated from a syndicated feed.)

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