Lenders to troubled mortgage financier Dewan Housing Finance Limited (DHFL) have agreed to extend the deadline to submit bids for the company by 21 days to May 7 amid the Coronavirus related lockdown, people aware of the decision told CNBC-TV18.

The extension comes after several suitors approached the lenders about delays being faced in putting together a bid amid restricted activities during the lockdown period. The original deadline to submit these binding bids was set for April 16, said bankers involved in discussions.

If the lockdown related difficulties persist, the creditors' committee may be forced to consider another extension, added one of the people quoted above.

The deadline extension was communicated to all 22 shortlisted suites via the Virtual Data Room (VRD) yesterday, another person added.

The 180-day time period allowed for resolution under the Insolvency and Bankruptcy Code ends on May 31st for DHFL. The creditors' committee may also seek another 90 days extension permitted under IBC for the resolution, given the delays in the process, CNBC-TV18 had reported earlier.

22 suitors have been shortlisted from among 24 that ad submitted Expressions of Interest to acquire the company, CNBC-TV18 had reported.

These include corporates like the Adani Group, Welspun Group, Piramal Enterprises, Hero Fincorp, private equity giants like Blackstone fund, Warburg Pincus, Barings, Cerberus, KKR, asset reconstruction companies like ARCIL, SSG Capital, Phoenix ARC among others.

DHFL is the first financial services company to be admitted into NCLT under the Insolvency and Bankruptcy Code for resolution under the newly introduced Section 227 of the IBC.

Financial creditors alone have made claims of over Rs 86,892 crore against the company under IBC, of which Rs 80,979 crore of claims have already been admitted.

First Published:Apr 3, 2020 12:28 PM IST