MUMBAI: Dewan Housing Finance Corporation Ltd (DHFL) on Tuesday said it has submitted a draft resolution plan that seeks moratorium on repayments, and a plan that offered no principal haircut to any creditors.
In a regulatory filing with the stock exchanges, DHFL said the company had, in consultation with the Special Committee for Resolution Plan and financial advisors Ernst & Young, came up with the plan for its lenders.
DHFL had repaid over Rs 41,000 crore by sale of various assets since trouble began in September last year, but the issue of asset-liability mismatch, delayed payments, defaults and credit ratings downgrades had put a question mark on its ability to service debts of over Rs 50,000 crore.
Rating agencies had raised concerns over the mismatch in payments received on loans disbursed, and the payments to be made by DHFL on its debts.
DHFL has sought moratorium on repayments as per the resolution plan, and further said it would seek funding from banks and National Housing Bank for restarting retail funding activity. The proposals also include measures to align the asset-liability mismatch. DHFL shares rose Rs 13.45 or 32 per cent on Tuesday to close at Rs 55.40, enthused by the news of company’s resolution plan. DHFL has also been looking to rope in partners who would bring in fresh equity to revive the company.