Dewan Housing Finance Corporation (DHFL) has finalised a resolution plan that proposes no principal haircuts to any creditors, the troubled housing finance company (HFC) said in a statement to exchanges on August 6.
The plan, which aims to restructure almost Rs 1 lakh crore of debt, lists steps to align asset-liability mismatch and seek moratorium on repayments, along with a funding sought from lenders or the National Housing Bank (NHB) for starting retail funding activity.
The plan was approved by the Special Committee for Resolution Plan in its meeting held on August 6. The draft plan was formulated in consultation with the committee and financial advisors Ernst & Young.
As per regulatory norms, the resolution plan will need consent of at least 60 percent of its creditors by number and three-quarters of lenders by value to go through. Apart from banks, DHFL’s creditors include nearly 86,000 non-convertible debenture holders and 300 institutional bondholders.
Last month, DHFL said the ability of the company to continue as a going concern depends upon its ability to monetise its assets, secure funding from the bankers or investors, restructure its liabilities and recommence its operations.
In a separate statement, DHFL also informed exchanges on the decision made by Deloitte Haskins & Sells for discontinuing as auditors of the HFC. The auditing firm said its policy on client acceptance and continuation does not permit them to continue as statutory auditors of DHFL.
“The company is in discussion with leading reputed audit firms for appointment as statutory auditors, subject to necessary approvals by the Audit Committee of the Board/Board of Directors and the shareholders,” DHLF said in the statement on August 6.
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