DHFL: Piramal Group pays Rs 34,250 cr. to creditors

TIL Desk/Business/Mumbai/ Piramal Enterprises (PEL) on Wednesday said it has completed the acquisition of Dewan Housing Finance (DHFL) by paying Rs 34,250 crore to creditors of the housing finance company. The company said the creditors of DHFL, including fixed deposit (FD) holders, would recover an aggregate amount of Rs 38,000 crore from the resolution process of DHFL.

The amount comprises approximately Rs 34,250 crore to be paid by Piramal Capital and Housing Finance Ltd (PCHFL) as a combination of cash and NCDs, and an amount of approximately Rs 3,800 crore which is the entitlement of creditors as per the resolution plan from the cash balance available with DHFL, the company said.

Piramal Group chairman Ajay Piramal said the transaction marks a successful closure of the first resolution under the IBC rules in the financial services sector and sets a precedent for future resolutions. “We have now made the payment of the consideration amount. In value terms, the transaction is amongst the largest resolutions till date.