Dewan Housing Finance (DHFL) on Wednesday said it has paid around Rs 5.88 crore towards interest payable on non-convertible debentures (NCDs).
Dewan Housing Finance (DHFL) on Wednesday said it has paid around Rs 5.88 crore towards interest payable on non-convertible debentures (NCDs). According to the filing on the exchanges, DHFL said these NCDs were issued on a private placement basis.
On Tuesday, DHFL had paid Rs 961.95 crore towards interest payable on secured redeemable non-convertible debentures (NCDs). Market participants say on June 4, 2019, DHFL had interest and principal payments due to the tune of approximately `1,100 crore to the industry/investors and the company failed to repay on the scheduled date.
Later, several of the debt mutual funds had marked down around 75%-100% of the value of the assets. As per Sebi and the Reserve Bank of India regulations, if even one day’s principal or interest is delayed, it is effectively a default.
On June 5, 2019, Crisil, Icra and Care had downgraded their ratings on commercial papers (CPs)/NCDs of DHFL to ‘D’ because of delay in debt servicing due to inadequate liquidity, modest capital position and modest earnings. The rating revision takes into account the recent instance of delay in servicing obligations with respect to some of the NCDs due to a prolonged liquidity stress.
Later on June 8, DHFL said it has repaid dues worth a total of `276.05 crore to retail and institutional investors. It has paid back `59.74 crore of its total obligations worth `961.95 crore to 35,595 retail investors holding its NCDs and said it would ensure that the rest of them are repaid within seven working days.
Interest payments due on June 4 and June 6 on NCDs issued on a private placement basis had also fallen. DHFL said for the first set of NCDs, on which interest dues are worth `80 crore and the principal amount aggregates `120 crore, it has arranged funds and met its obligations. For the second set, interest aggregating to `16.31 crore was scheduled for June 6.