Creditors will discuss the eligibility criteria for prospective resolution applicants
Other issues on the agenda are updates on the insolvency process, a resolution strategy
Creditors to Dewan Housing Finance Corp. Ltd (DHFL) will meet on 16 January to discuss the eligibility criteria for prospective resolution applicants, said a person aware of the development, requesting anonymity.
Other things on the agenda, the person said, are updates on the insolvency process since the first meeting on 30 December; a resolution strategy for the lender; and an update on operations. Moreover, the Reserve Bank-appointed administrator may discuss the status of claims submitted by creditors.
In the 30 December meeting, the committee of creditors (CoC) had 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. The firm has not disbursed loans for more than six months due to a liquidity crunch that also led to a series of defaults. DHFL’s assets under management are at ₹1.19 trillion, of which ₹63,690 crore is in retail loans and the remaining in wholesale.
RBI-appointed administrator R. Subramaniakumar is concerned that the rapid decline in DHFL’s loan book will make it less valuable to potential investors.
Meanwhile, it is to be seen if Subramaniakumar gives an update on pending dues of lenders from securitized assets. Since the insolvency process began, lenders have stopped receiving repayments for assets bought under securitization deals from DHFL. The administrator has made representations to RBI, and suggested banks to approach the regulator independently as well.