MUMBAI: Dewan Housing Finance Corporation Ltd (DHFL) on Tuesday disclosed that it has defaulted in the case of an unsecured Commercial Paper where it could make only partial payments. In a regulatory filing, the company said that out of Rs 375 crore due, it paid only 40 per cent of the amount and the balance of Rs 225 crore would be paid in the next couple of days once the surplus cash flow position improves.
“The Company is already in the process of selling down its loan assets including wholesale project loans to make good all its obligations and maintain its 100% commitment to all its creditors as it has done since the liquidity crisis started in September 2018. The Company does not differentiate between secured and unsecured creditors and will continue to uphold its standing as one of the leading Housing Finance Companies of the country,” DHFL said.
Early this month rating agencies CRISIL and ICRA downgraded Rs 850 crore worth CPs of DHFL to the default grade after the firm missed interest payments. Subsequently, the company made good some of these interest and principal payments. Since September, DHFL has repaid close to Rs 41,000 crore in financial obligations and sold some of its assets towards repayment. With a ‘D’ rating, mutual funds holding the CPs had to mark down their investments by 100 per cent.