Business & Investment

Bidding on DHFL: The idea of ​​the “Swiss Challenge” is not communicated to creditors

The distressed DHFL Creditors Commission (CoC) has discontinued the proposals of advisors and attorneys to participate in the “Swiss Challenge” method of determining successful bidders.

This was rejected because lenders felt that the introduction of the “Swiss Challenge” would lead to legal complications and delay the entire process, according to sources close to development. Some bankers can also consider introducing the “Swiss Challenge” at this stage as a change in procedure (the original RFRP document did not mention the “Swiss Challenge”) and the original bidder. I felt that I could dispute from. It can be recalled that as many as 21 people first submitted a solution plan and showed an interest in participating in the DHFL resolution process.

The introduction of the “Swiss Challenge” that would have occurred on the electronic platform meant that all three bidders, Oaktree, Pyramal and Adani Group, would be allowed to offer each other, no one. It means that .1 can appear. (Winning) Bidder. “In the’Swiss Challenge’, everyone knows what they first bid on and can increase their bids like an auction. It’s on an electronic platform, so who’s increasing offers, and more. No one knows, “said a former chief executive officer of a public sector bank.

The deck has been cleared for voting

The “Swiss Challenge” proposal was rejected, clearing the deck for CoC members to evaluate and individually vote for all three settlement plans submitted by Oaktree Capital, Pyramal and Adani Group. The voting process will be completed in about 15 days from Sunday.

Voting results have been shown to be available by January 13th.

Only after the voting results are available will the distribution plan be completed. This is very important for 79,000 strange depositors who want to get some of their money back after the settlement process.

Depositors hold 4% of voting rights and corporate bond holders hold 52%. After a few bids, it became clear that Oak Tree was the leading candidate, followed by Pyramal and Adani Group (by net present value), bankers personally say.

Bidding on DHFL: The idea of ​​the “Swiss Challenge” is not communicated to creditors Bidding on DHFL: The idea of ​​the “Swiss Challenge” is not communicated to creditors

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