Dewan Housing Finance Corporation (DHFL) on Tuesday said it will not make any interest or principal payment to lenders as well as bond holders as the company is under resolution process.
The Corporate Insolvency Resolution Process (CIRP) was initiated against the debt-ridden company as per the provisions of the Insolvency and Bankruptcy Code, 2016 with effect from December 3, 2019.
DHFL said all the rated debt papers of the company are carrying default grade ratings and disclosures on the same have been made to the exchanges.
The creditors of the company were duly informed about commencement of the CIRP and were requested to submit their claims to the company in the prescribed manner as per the provisions of the Code.
The amounts to be received towards the dues by the creditors will be based on a resolution plan to be approved in due course by the NCLT, Mumbai, DHFL said in a regulatory filing.
The non-banking finance company (NBFC) further said that it is under moratorium and dues to lenders and bond holders will remain in abeyance until the CRIP is completed.
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The company is in moratorium under Section 14 of the Code since November 29, 2019 under Rule 5(b)(i) of Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules 2019.
"...it has not made and shall not be making payment of interest or principal to any of the lenders of the company including the NCD holders under all ISINs till approval and implementation of resolution plan and till then any payments to the lenders or NCD holders will continue to remain in abeyance subject to the CIRP process," Dewan Housing Finance said.
International Securities Identification Number (ISIN) is a 12-character unique alphanumeric code used for uniform identification of a security.
The company has made a series of debt defaults after the crisis unfolded and was superseded by the RBI in late November last year on concerns over its corporate governance and defaults, and appointed an administrator.
As of July 2019, the beleaguered home financier owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders/retail bondholders. Of this secured debt is Rs 74,054 crore and Rs 9,818 crore is unsecured.
Stock of DHFL closed 4.97 per cent up at Rs 9.50 apiece on the BSE.
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