DHFL admitted for insolvency proceedings
Mumbai: troubled mortgage lender DHFL It has become the first financial firm to be admitted for insolvency proceedings. A Mumbai bank of the National Court of Corporate Law admitted on Monday a petition from the RBI seeking to initiate bankruptcy proceedings against the company. On November 29, the RBI had submitted the application for insolvency proceedings and had said it would be followed by a moratorium on all claims against the company. The RBI had earlier said that it would seek appointment of the administrator as insolvency professional for the company. The RBI had appointed former Indian Overseas Bank chief R Subramaniakumar As administrator of the company. Admitting the petition, a NCLT bench said, the request deserves admission.
As part of the process, the resolution professional will receive claims from several creditors and admit them after they are verified. The resolution professional will invite requests for offers from interested parties after establishing a reserve price. If there are no policyholders, the business will be liquidated and the income will be distributed to the financial creditors in accordance with the terms of the cascading agreement, which determines the order of priority of the creditors.