The company said in a regulatory filing that the draft resolution plan is no longer valid following commencement of insolvency proceedings against it in November last year under IBC
DHFL’s assets under management are at ₹1.19 trillion, of which ₹63,690 crore is in retail loans
Stressed mortgage lender Dewan Housing Finance Corp Ltd (DHFL) on Monday withdrew a resolution plan it had submitted to lenders and other institutional creditors in September 2019.
The company said in a regulatory filing that the draft resolution plan is no longer valid following commencement of insolvency proceedings against it in November last year under the Insolvency and Bankruptcy Code (IBC). The resolution plan envisaged lenders converting a part of the debt into equity and take a 51% stake in the mortgage lender.
“We hereby request you to take down/ remove from record, the draft Resolution Plan that was formulated and presented to all its institutional creditors including banks, financial institutions, mutual funds, insurance companies and other institutional bond holders. The draft resolution plan, prepared by the erstwhile management of the company, is no longer valid and may no longer be valid," the company said in a statement to stock exchanges.
DHFL’s assets under management are at ₹1.19 trillion, of which ₹63,690 crore is in retail loans and the remaining in wholesale. On 20 November last year, RBI superseded DHFL’s board and later referred the mortgage lender to the National Company Law Tribunal (NCLT), citing governance concerns and payment defaults by the firm as reasons for superseding the board.
DHFL is the first non-bank lender to be referred to NCLT under new rules notified by the government on 15 November, 2019. Meanwhile, in the 30 December meeting, the company’s committee of creditors (CoC) approved a plan under which the mortgage lender could resume disbursing home loans, beginning with ₹500 crore a month, to arrest the decline in its loan book. However, this move was challenged by its fixed deposit holders who moved the Supreme Court against it last week.