💠💠Lenders to Dewan Housing Finance Corp. Ltd (DHFL) are set to declare 65% of loans outstanding to the stressed mortgage lender as unsustainable, as part of a debt settlement plan, two people aware of the development said.
Of the total ₹24,700 crore of unsustainable debt, or the portion of loans that DHFL can’t service through its cash flows, ₹760 crore will be converted into equity at ₹54 per share, while ₹8,740 crore will be recast into unsecured debt that won’t generate any interest payments, one of the two people cited above said on condition of anonymity.
The remaining ₹15,200 crore of unsustainable debt will be converted into 10-year non-convertible debentures with a coupon rate of 6% and will be allocated to its lenders.
The ₹13,300 crore so-called sustainable component of bank loans will receive an annual interest of 8.5% and has to be repaid over eight years. The mortgage lender has a total bank debt of ₹38,000 crore as on 31 December, according to the latest available investor presentation.
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