The
National Company Law Tribunal (NCLT) has constituted a Monitoring Committee for
Dewan Housing Finance Limited (DHFL) to oversee the management and control of
the company till the implementation of the Piramal Group’s resolution plan. The
court has also asked the Committee of Creditors to consider the distribution of resolution
funds within two weeks. The NCLT has said that the management and control of
DHFL will be with the Monitoring Committee for the period between the date of
approval of the court’s resolution plan (June 6) to the date of implementation.
The seven-member monitoring committee will consist of three representatives
nominated by the Committee of Creditors, two representatives nominated by the
successful bidder who took over the company, an administrator appointed by the
RBI and an observer appointed by the court. The court has appointed Ashor
Kakar, retired commissioner of income tax and former executive director of
SEBI, as observer.
The
NCLT has suggested the Committee of Creditors to reconsider the distribution of
resolution funds among various creditors. NCLT is of the view that small
investors should be given more amount. Apart from this, the NCLT has said that
the non-agreed financial creditors (ICICI Bank, FD holders and debenture
holders) should be paid lump sum cash, not debt securities. The total offer in
the resolution plan of Piramal Group is Rs 37,250 crore. This includes a
one-time cash payment of Rs 12,700 crore to creditors.
Indian
stock exchanges Bombay Stock Exchange and National Stock Exchange have
announced to stop trading of stocks of debt-ridden and bankrupt Dewan Housing
Finance Company on their platforms. From June 14, 2021, now DHFL shares will
not be bought and sold on BSE and NSE. The closure of trading of the company’s
shares by BSE and NSE will lead to loss of money of lakhs of equity
shareholders who had retained their investments in DHFL till now. BSE and NSE
said in their circulars that DHFL informed the stock exchange on June 8 that
NCLT Mumbai has approved its resolution plan, which will delist the equity of
the company from the stock market.
---------
Dr.
Deepak Miglani, Email id:- legalbuddy@gmail.com
No comments:
Post a Comment