DHFL lenders likely to execute resolution plan next week

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Published: September 26, 2019 2:08:42 AM

Bankers had indicated early on that they were comfortable with taking over operations of the company briefly, until such time as a new investor could step in and take charge.

The meetings come ahead of the company’s 35th annual general meeting to be held on September 28.The meetings come ahead of the company’s 35th annual general meeting to be held on September 28.

Lenders to Dewan Housing Finance Corporation (DHFL) are looking to execute the proposed resolution plan, which among other things, calls for Kapil Wadhawan to step down as chairman and managing director, by early next week.

The company met with bank lenders on Wednesday and is set to meet institutional creditors on Friday. The meetings come ahead of the company’s 35th annual general meeting to be held on September 28.

“Once the enabling resolutions are passed, we expect to see full implementation of the plan, which should happen early next week,” a senior banker said.

FE had earlier reported that as part of the resolution, bankers wanted Wadhawan to reduce his stake to below 10% and also required the promoter to pledge a part of their remaining stake to lenders (which would be below 10%). The promoter group holding in DHFL is 39.21%.

Bankers had indicated early on that they were comfortable with taking over operations of the company briefly, until such time as a new investor could step in and take charge.

FE has also reported that other terms within the plan may include segregation of bad debt into a fresh entity or instrument, leaving DHFL with a purely retail portfolio, which is expected to get better response from any new investor.

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