Oaktree sends letter to DHFL creditors on concerns about corporate insolvency resolution process

In a letter to creditors of Dewan Housing Finance Limited (DHFL), Oaktree Capital has urged for fair treatment in the evaluation of its bid. The American global asset management firm has cautioned against discrimination in the corporate insolvency resolution process (CRIP) due to its foreign origin. The company highlighted that it is committed to investing in India and was invited to participate in the resolution process because of its track record.

However, Oaktree said that it has been subject of a sustained campaign to undermine its bid. "This has revolved around three main themes: the conditionality of the Oaktree bid, the legality of Oaktree as a foreign investor indirectly holding a majority stake in Pramerica Life Insurance Limited (PLIL) and Oaktree as a foreign investor representing an implementation risk."

DHFL has received bids from Piramal Capital and Adani Group, while another lender, a Hong Kong-based SC Lowy backed out of the race alleging unfair treatment by DHFL lenders.