NEW DELHI: Creditors of the bankrupt non-banking financial company DHFL met on Friday to evaluate bids from Piramal Group and Oaktree Capital, with voting on the offers expected to happen next week.
According to sources, the Committee of Creditors (CoC) are tilted towards the Piramal Group, since their bid offers a larger cash component and more "favourable" terms and conditions. "The two highest bidders for DHFL are Piramal Group and Oaktree Capital. While the total amount offered by Oaktree Capital is higher, this comes with too many conditions. Piramal is offering more upfront cash. The CoC is weighing the merits of both," a source aware of the proceedings said.
DHFL has received four bids in total: from Oaktree Capital, Piramal Capital & Housing Finance (PHFL), Adani Properties, and SC Lowy. After four rounds, Oaktree and Piramal have emerged as the top bidders.
Oaktree Capital has offered Rs 36,646 crore for the entire DHFL business, while Piramal has placed a Rs 35,550 crore bid.
But Piramal has an advantage since it is offering a higher upfront cash payment. Piramal’s offer also says it will merge its finance business with DHFL in order to raise its overall net worth.
It will also pay deferred payments worth Rs 19,550 crore in 10 years, while Oaktree has offered to make a deferred payment on bonds worth Rs 21,000 crore, along with upfront payment of Rs 11,646 crore.
Sources claim however that Oaktree Capital has already offered to drop some of its initial conditions. The voting on the bids is expected next week.