Dewan Housing Finance Company has gone bankrupt
The seven-member monitoring committee comprises three representatives nominated by the CoC, two representatives nominated by the successful bidder who took over the company, an administrator appointed by the Reserve Bank of India (RBI) and an observer appointed by the court. Will be.
New Delhi. The National Company Law Tribunal (NCLT) has constituted a Monitoring Committee for the management and control of the company till the implementation of the resolution plan of Piramal Group for Dewan Housing Finance Limited (DHFL). The court has also asked the Committee of Creditors (CoC) 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 CoC, 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.
Distribution of resolution funds
The NCLT has suggested the CoC to reconsider the distribution of resolution funds among various creditors. NCLT is of the view that small investors should be given more amount. It has asked the NCLT to inform about this within two weeks from the date of the order. 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.
Here BSE and NSE stopped trading of DHFL stocks foreverIndian 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 exchanges on June 8 that NCLT Mumbai has approved its resolution plan, which will delist the equity of the company from the stock market.