Bondholders Take Dewan Housing Finance Corporation (DHFL) To Bankruptcy Court

Bondholders Take Dewan Housing Finance Corporation (DHFL) To Bankruptcy Court

DHFL owes money to about 87,000 bondholders


MUMBAI: The resolution plans of debt-laden shadow lender Dewan Housing Finance Corporation Ltd (DHFL) have hit a roadblock after the custodian of DHFL bonds said on Thursday it is taking the firm to bankruptcy court on behalf of certain debenture holders.

The application was filed on October 16 in the Mumbai Debts Recovery Tribunal to claim Rs. 26,861 crore ($3.8 billion), it said.

The claim is: “for recovery of the amount of debentures outstanding, along with interest, for and on behalf of all debenture holders under all the three public issues,” the custodian said.

DHFL was not immediately available for comment.

Apart from banks, DHFL also owes money to about 87,000 bondholders. The lenders are currently working on a resolution plan but the majority of its bondholders declined last month to be a party to that plan.

The proposed plan involves the conversion of debt into equity for lenders and also includes giving them a 51 per cent stake in the company.

On Thursday, DHFL also filed delayed audited results for the quarter ended June 30 which showed it posted a net loss of Rs. 206 crore in the quarter compared with a profit of Rs. 435 crore in the corresponding period a year earlier.