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DHFL agrees to sell wholesale book to Oaktree Capital: Report

DHFL, India’s fourth largest housing finance company, has a total debt of Rs 1 lakh crore, of which Rs 40,000 crore is owed to banks alone

October 14, 2019 / 02:43 PM IST
 
 
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Dewan Housing Finance (DHFL) has signed a non-binding term agreement with Oaktree Capital to sell its entire Rs 35,000 crore wholesale book, reports The Economic Times.

“It is for lenders led by SBI to move ahead with the sale,” a source told the publication.

DHFL had on September 29 proposed a debt resolution that involves offering creditors a 51 percent stake in the company.

The housing financier’s lenders, led by State Bank of India (SBI), are working on the debt resolution plan. They will meet from November 13-15 to vote on the debt resolution proposal, the report said.

DHFL, India’s fourth largest housing finance company, has a total debt of Rs 1 lakh crore, of which Rs 40,000 crore is owed to banks alone.

As per the draft resolution plan, DHFL will convert 2.3 percent of each lender's debt exposure in to equity at a price of Rs 54 per equity share. The proceeds from the sale of loan assets will be used to service loans to DHFL creditors over the next 10-20 years.

Also read: DHFL proposes converting debt to equity under draft resolution plan

Moneycontrol could not independently verify the story.

Oaktree has previously purchased assets worth Rs 3,000 crore from DHFL, the report said.

DHFL has denied the news, and reiterated statement previously made by the company.

"The Company is in discussions with various parties to appoint development managers for some of its large projects and the Company has also made significant progress in bringing in investors' interest in certain projects for extending fresh working capital to get the projects moving towards completion stage," the housing financier said in a statement to the stock exchange.

(This copy has been updated with comments from the company) 

Moneycontrol News
Tags: #DHFL
first published: Oct 14, 2019 10:40 am

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