DHFL administrator issued debt settlement- receives Rs 1.2 lakh crore claims from creditors.

The Dewan Housing Finance Corporation (DHFL) administrator allegedly issued total debt settlement demands of about Rs 1.2 lakh crore from creditors after the RBI referred debt settlement to the indebted Non-Banking Finance Company (NBFC).

“The lenders have filed their claims including debenture holders, secured lenders and depositors. So far the amount is about Rs 1.2 lakh crore,” said a private concerned person. “The administrator will soon begin to accept and reject claims.”

On 2 December, DHFL was admitted to the chapter on insolvency by the National Company Law Tribunal (NCLT), which appoints R Subramaniakumar as an administrator of the firm.

For more than a year, the troubled house financial institution is in a liquidity crisis. On 20 November, the RBI outmoded its board and substituted it with an administrator.

A tri-member advisory committee was subsequently constituted by the Central Bank that consist of Rajiv Lall, Executive Chairman of the IDFC First Bank; NS Kannan, MD of ICICI Prudential Life, and NS Venkatesh, CEO of the Mutual Funds Association in India.

When the tribunal admitted the plea of the RBI, DHFL owed banks, the National Housing Board (NHB), mutual funds and bondholders over Rs 83,800 crore. About Rs 74,000 crore was secured, while about Rs 9,800 was unsecured.

With the declaration by RBI of the DHFL insolvency resolution process, a provisional moratorium on all company claims has also begun. The financial services provider’s mediation process is similar to the business insolvency settlement process, with some variations according to Ashish Pyasi, Dhir & Dhir associate partner. The administrator performs the process like a resolution professional and his position, duties and powers are similar.

“He will call for claims and form the creditors’ committee, as with any other phase of settlement. The only difference is that if the regulator finds it appropriate, then the advisory committee can be set up to help the administrator,” said Pyasi.