DHFL to discuss draft resolution plan with bankers

Last Updated: Tue, Sep 24, 2019 14:09 hrs
DHFL General Insurance (Image Courtesy: DHFL)

Mumbai (Maharashtra): Financially-strapped Dewan Housing Finance Corporation (DHFL) will discuss its draft resolution plan at a meeting of lenders on Wednesday.

"Further to the various disclosures made by the company in respect of its ongoing proposal on debt restructuring and formulation of a resolution plan under the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets dated June 7, the company would like to inform you that it is been undertaking extensive discussions with its lenders," the company said in a statement on Tuesday.

"Pursuant to these discussions, the company will be holding a meeting on September 25 with its bank lenders to discuss the draft resolution plan. A further meeting will also be held on September 27 by the company with all its institutional creditors in connection with the draft resolution plan," it added.

DHFL is the fourth-largest Indian housing finance company based on loans outstanding as of March. It has been facing a liquidity crisis since September 2018 but has paid over Rs 41,000 crore towards discharging its financial obligations.

The housing finance company has faced multiple rating downgrades in recent months. DHFL says it has been working towards resolving its liquidity crisis in a comprehensive and timely manner.

Last month, DHFL said it defaulted on its financial repayment obligations worth Rs 1,571 crore with regard to the issuance of bonds and commercial papers. The company declared its March quarter results after months of delay on July 13 and reported a loss of Rs 2,223 crore.