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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The resolution plan drawn up by the committee of creditors seems unduly generous to the new owners even as it gives ordinary creditors the short shrift.
Editor's note: The resolution of bankrupt Dewan Housing Finance Ltd under the Insolvency and Bankruptcy Code for a consideration of Rs 34,500 crore by Piramal Capital and Housing Finance Ltd seems like a done deal. The Reserve Bank of India and Competition Commission of India have given their blessing to the resolution plan. Yet, the feeling persists that the committee of creditors, which worked out the plan, may have either erred or taken a lenient approach in clearing the deal. For one, the resolution plan approved by the committee has assigned a mere Re 1 value to the estimated Rs 30,000-Rs 40,000 crore swindled by the Wadhawan brothers, the erstwhile promoters of DHFL, by misusing government schemes. This, basically, means Piramal Capital gets every cent of any recovery made against these monies. Second, the extent of haircut that creditors will have to take has left many unhappy. While for secured creditors like banks and financial institutions the haircut is in the region of 60%, for unsecured creditors such as fixed deposit and bond holders it is in excess of 90%. A bunch …
The resolution plan drawn up by the committee of creditors seems unduly generous to the new owners even as it gives ordinary creditors the short shrift.
Editor's note: The resolution of bankrupt Dewan Housing Finance Ltd under the Insolvency and Bankruptcy Code for a consideration of Rs 34,500 crore by Piramal Capital and Housing Finance Ltd seems like a done deal. The Reserve Bank of India and Competition Commission of India have given their blessing to the resolution plan. Yet, the feeling persists that the committee of creditors, which worked out the plan, may have either erred or taken a lenient approach in clearing the deal. For one, the resolution plan approved by the committee has assigned a mere Re 1 value to the estimated Rs 30,000-Rs 40,000 crore swindled by the Wadhawan brothers, the erstwhile promoters of DHFL, by misusing government schemes. This, basically, means Piramal Capital gets every cent of any recovery made against these monies. Second, the extent of haircut that creditors will have to take has left many unhappy. While for secured creditors like banks and financial institutions the haircut is in the region of 60%, for unsecured creditors such as fixed deposit and bond holders it is in excess of 90%. A bunch …
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
Acquirer JSW Steel and the other parties to the resolution process of the insolvent entity vitiated the sanctity of the bankruptcy code, the apex court found.
The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
Acquirer JSW Steel and the other parties to the resolution process of the insolvent entity vitiated the sanctity of the bankruptcy code, the apex court found.
The increasing convergence of sales and service functions, with consequent non-stop pressure to meet targets, has seen employees jump ship in droves. This has the potential to adversely impact the financial institutions’ health.
