Get Annual plan at only Rs 289. The resolution plan involves conversion of a portion of debt into equity and issuance of non-convertible debentures.
Awaiting a go-ahead from the Reserve bank of India (RBI), lenders to Dewan Housing Finance Corporation Limited (DHFL) have come to an agreement on a three-level resolution plan, as per a report in The Economic Times.
Moneycontrol could not independently verify the report.
"The plan that lending banks have broadly agreed upon involves conversion of some debt into equity. This is a small portion, may be 1 percent," a banker closely involved with the negotiations told the paper.
The resolution plan involves conversion of a portion of debt into equity and issuance of non-convertible debentures. These steps would give creditors a majority stake in the debt-ridden NBFC.
Of the Rs 80,000 crore DHFL owes its creditors, banks have an exposure of Rs 35,000 crore through loans and debentures. Another Rs 45,000 crore exposure is of bond holders, which includes mutual funds, insurance companies and pension funds.
Its top lenders are State Bank of India (SBI), Bank of Baroda (BoB) and Union Bank of India.
The last payment by DHFL on its loans was made on May 5, according to banks. They have said that they are now awaiting the next payment that fell due in July.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
