Key meet today of crisis-hit DHFL’s creditors on debt resolution
The central bank had taken over the board of the company after it had defaulted on meeting various payment obligations to its lenders and had sent it to NCLT for resolution process.
The Reserve Bank of India-appointed administrator will meet creditors of the beleaguered DHFL (Dewan Housing Finance Ltd) on Monday to discuss the debt resolution plan of the company.
The creditors of the company comprise banks, bondholders, insurance and mutual fund companies.
The administrator R Subramaniakumar, ex-MD and CEO of Indian Overseas Bank, was appointed in November by the RBI.
The central bank had taken over the board of the company after it had defaulted on meeting various payment obligations to its lenders and the central bank sent it to National Company Law Tribunal (NCLT) for resolution process.
DHFL is the third-largest pure play mortgage player and the first non-banking financial company or housing finance company to have faced the corporate insolvency resolution process under the Insolvency and Bankruptcy Code.
NCLT had admitted DHFL for resolution process and it had said the total outstanding unsecured loan of company stood at Rs 18,882 crore till March 31, 2018. Of which, the total unsecured public deposits included Rs 10, 243 crore.
Till July 2019, the crisis-laden NBFC owed Rs 83,873 crore to banks, National Housing Board, mutual funds and bondholders as well as retail bondholders. The total secured debt of it stood at Rs 74,054 crore.
The administrator has been appointed and he has decided to meet all creditors to discuss the way forward for the speedy and timebound resolution of the company.
In its order dated December 3, the NCLT ordered the administrator R Subramaniakumar to get the list of depositors updated along with the amount payable to each of them as soon as possible.
Following the order, the administrator urged the fixed depositors and bondholders to file their claims by December 17.
To iron out any difficulties in the resolution process, RBI has also appointed a three-member committee comprising IDFC First Bank non-executive chairman Rajiv Lall, Association of Mutual Funds in India CEO N S Venkatesh and ICICI Prudential Life Insurance managing director and CEO N S Kanan. The committee is meant to advise the administrator in the resolution process.