The Committee of Collectors (CoC) of the beleaguered DHFL has shot down the suggestion of the advisor and authorized counsel to go in for a ‘Swiss Problem’ technique to determine on the profitable bidder.
This was rejected as lenders felt the introduction of ‘Swiss Problem’ would result in authorized issues and delay the complete course of, sources near the event mentioned. Some bankers additionally felt that introducing ‘Swiss Problem’ at this stage could possibly be thought-about as a change of process (the unique RFRP doc didn’t point out ‘Swiss Problem’) and invite objection from the unique set of bidders. It might be recalled that as many as 21 individuals had initially proven curiosity in submitting a decision plan and collaborating within the decision course of for DHFL.
Introducing a ‘Swiss Problem’, now which might have occurred on digital platform, would have meant that every one the three bidders — Oaktree, Piramal and Adani Group — can be permitted to make affords in opposition to one another, implying that anybody can emerge the No 1 (profitable) bidder. “In ‘Swiss Problem’, everyone will know what the opposite individual has initially bid and might enhance the bid similar to an public sale. Since it’s on an digital platform, who’s rising the provide the opposite individual is not going to know,” a former chief govt of a public sector financial institution mentioned.
Decks cleared for voting
With the rejection of the proposal for ‘Swiss Problem’, decks have now been cleared for the members of the CoC to judge and individually put to vote all of the three decision plans submitted by Oaktree Capital, Piramal and Adani Group, respectively. About 15 days from Sunday will likely be out there for the voting course of to be accomplished.
Indications are that the outcomes of the voting will likely be out there by January 13.
Solely after the end result of the voting will the distribution plan get finalised. That is essential for the 79,000 odd depositors who’re hoping that they may get a few of their monies again submit the decision course of.
Depositors maintain 4 per cent of voting rights, whereas debenture-holders have 52 per cent. After a number of rounds of bidding, it’s now evident that the Oaktree is the frontrunner, adopted by Piramal and Adani Group (going by the Web Current Worth), say bankers in personal.