The company proposed steps or measures towards addressing aligning asset-liability mismatch.
Shares of Dewan Housing Finance Corporation rallied 32 percent on August 6 after lenders were assured of no haircut on debt in the company's resolution plan. The stock closed at Rs 55.40 on the BSE.
The debt-laden company said its creditors would not have to take any haircuts on principal payments under its resolution plan.
The resolution plan is formulated by the company in consultation with the committee and its financial advisors, Ernst & Young.
The company proposed steps or measures towards addressing/aligning asset-liability mismatch.
As part of the resolution plan, DHFL said it would also put a moratorium on repayments and seek funding from banks/National Housing Bank (NHB) to start retail lending.
DHFL, one of largest housing finance companies in India, has roughly Rs 1 lakh crore of debt and is in the process of seeking lender approval on a restructuring designed to help it ride out a liquidity crunch and restart its lending business.
In a separate statement, the company said its auditor Deloitte, Haskins & Sells LLP had resigned, citing irregularities in DHFL's financial statements for the year ending March 31.
Last month, DHFL filed its long-delayed audited results for the quarter ended March 31 and revealed that its auditors had raised several red flags around its numbers.
After the company announced the resolution plan, sources told CNBC-TV18 that creditors saw the company's assets in three buckets; retail assets of Rs 35,000 crore that is standard and good, large mortgage loans of Rs 15,000 crore also seen as nearly standard, and SRA and other assets of Rs 35,000 crore that is bad or requires deep moratorium.According to sources, haircut around 30 percent is expected and small public depositors may be given preferential treatment. Creditors eagerly await approval from SEBI to let mutual funds participate in the resolution process.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.