DHFL Chairman Kapil Wadhawan says that the company is accruing cash worth Rs 2,000 crore per month.
Dewan Housing Finance Limited (DHFL) Chairman Kapil Wadhawan has said that the company is not facing any solvency issues and that it has got assurance from lenders to raise funds to meet obligations.
According to a CNBC-TV 18 report on June 7, Wadhawan has said that its holding company sold multiple businesses to meet the liabilities of DHFL, and that it will pay the dues on non-convertible debentures (NCD) within the 7-day period. Wadhawan also said that the money that is expected to come next week from the sale of its affordable homes financing arm, Aadhar Housing Finance, to private equity major Blackstone, will help in the repayment of NCDs.
Wadhawan has also said that DHFL is on track to make payments for all its dues and has paid over Rs 35,000 crore of liabilities since the liquidity crisis that took place on September 2018.
According to Wadhawan, the company is on track to repay Rs 100 crore of commercial papers on June 7 and is confident of raising Rs 5,000 crore through the sell down of its portfolio. The company is accruing cash worth Rs 2,000 crore per month, he added.
Domestic rating agencies ICRA and Crisil, on June 6, downgraded the rating on Rs 850 crore worth of commercial paper of DHFL to “default” from “A4” due to the mortgage lender's deteriorating liquidity condition.
The rating of the company, which defaulted on a debt repayment on June 4, has been removed from the watch with negative implications by both the rating agencies.The net asset value (NAVs) of mutual funds that have exposure to DHFL debt papers fell sharply on June 4 after the company defaulted on repayment.The Great Diwali Discount!
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