For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Fixed Depositors At DHFL Risk Losing Money During IBC Resolution

|

The debt laden DHFL is the first to be taken to NCLT for insolvency proceedings after its board has been suspended on account of governance concerns as well as defaults in servicing various payment obligation.

 
Fixed Depositors At DHFL Risk Losing Money During IBC Resolution

Out of the company's total debt of Rs. 83,900 crore, 7% or Rs. 6000 cror is owed to public depositors who are regarded as unsecured financial creditors and are paid off once the dues of financial creditors and workmen is cleared. And in the claim settlement order, deposit holders in the NBFC bank are categorized as unsecured financial creditors.

 

Other stakeholders including debenture holders and banks are included in the secured creditors category and will enjoy the first charge on claims.

There could be a case that similar to Jaypee infra, depositors may demand of representation on the Committee of Creditors (CoC), that depositors be treated at par with secured financial creditors.

"With RBI filing the application to NCLT, an interim moratorium will also kick in, which will restrict all payments even to deposit holders," the report quoted Sudip Mahapatra, partner SNR Associates as saying. "Deposit holders can go to Supreme Court, and the SC could provide some relief to deposit holders."

GoodReturns.in

Story first published: Friday, November 22, 2019, 14:49 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X