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RBI may refer DHFL, Altico Capital to bankruptcy court

Lenders to DHFL are expected to discuss the matter on November 25.

November 20, 2019 / 11:06 AM IST
DHFL (File Image: PTI)

DHFL (File Image: PTI)

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The Reserve Bank of India (RBI) may refer debt-laden Dewan Housing Finance (DHFL) to the bankruptcy court, a Mint report has said.

DHFL and Altico Capital could become the first set of non-banking finance companies (NBFCs) to be sent to the bankruptcy court, sources told the publication.

DHFL lenders are expected to discuss the matter on November 25, the report said.

“While DHFL is almost certain to be referred to NCLT (National Company Law Tribunal), there is still some ambiguity over Altico," a source told Mint.

Moneycontrol could not independently verify the story.

The RBI can move resolution of financiers with assets of at least Rs 500 crore under an amendment to bankruptcy norms. The corporate affairs ministry announced the changes to the Insolvency and Bankruptcy Code (IBC) on November 18.

Also read - NBFC resolution under IBC: It’s all about the manner!

State Bank of India (SBI), which has exposure to both financiers, has appointed Cyril Amarchand Mangaldas as its legal adviser for the resolution process, the report added.

SBI has an exposure of Rs 10,000 crore to DHFL, chairman Rajnish Kumar had said recently.

RBI, SBI, DHFL, Cyril Amarchand Mangaldas and Altico have not yet responded to Mint’s requests for comment.

DHFL had in September proposed a resolution plan where lenders would be given a 51 percent stake in the company after converting debt to equity.
Moneycontrol News
first published: Nov 20, 2019 10:47 am