While SEBI permitted those mutual funds who had segregated the bad DHFL loans to join the inter-creditor agreement ICA in August 2019 with a conditions of keeping investor interest paramount , many mutual funds had not completed these conditions.
DHFL said the losses registered in Q1 of this fiscal were fully attributable to owners of the parent (company).
The beleaguered home financier owes Rs 83,873 crore as of July 6, 2019 to banks, the National Housing Board, mutual funds and bondholders, including retail bondholders.
DHFL, India’s fourth largest housing finance company, has a total debt of Rs 1 lakh crore, of which Rs 40,000 crore is owed to banks alone
The court said that the existing restraint on DHFL on making payments to third parties will continue
The bank's asset quality was significantly robust despite the concentration of HFCs and commercial banks in its loan portfolio, it said.
DHFL, which has been severely impacted by the NBFC crisis which unfolded late last year following the IL&FS bankruptcy, has defaulted on multiple commitments.
DHFL, the country's fourth-biggest housing finance company, has roughly 1 trillion rupees ($14.15 billion) of debt, and owes about 400 billion rupees to banks alone.
The index is just 25 points away from turning negative for the year 2019, and has fallen 4,219 points or little over 10 percent from its record high of 40,312 registered in June 2019.
Out of the 87,000 debenture holders who had been asked to be party to the resolution plan being deliberated upon by banks, only 24,400 debenture holders, or less than 30%, had responded before the due date earlier this month.
Funding is the oxygen for real estate developers. Starved of liquidity, projects will remain stuck and builders will develop cash flow problems. That will lead to asset quality problems for NBFCs which in turn will exacerbate the crisis.
Altico said in a regulatory filing that it has defaulted on interest payment of Rs 19.97 crore on a gross principal amount of Rs 340 crore
DHFL lenders have been working on the resolution plan since June 25. RBI guidelines mandate that a resolution plan must be implemented within 180 days.
The third-largest pure-play mortgage lender had borrowed money from the fund house through the commercial paper route, but paid only half of the dues in June.
DHFL paid Rs 75 crore in June and the remaining amount was paid on September 7.
It comes against the backdrop of the formulation of a draft resolution plan, adopted earlier this month, in accordance with the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets which was submitted to its lenders already.
Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, with 0.05 percent loss or 6 points. Nifty futures were trading around 11,116-level on the Singaporean Exchange.
The fund mop-up can also be through any other permissible mode or a combination of prospectus/placement document or letter of offer or any other permissible offer, it added.
Trends on SGX Nifty indicate a positive opening for the broader index in India, with 0.17 percent gain or 19 points. Nifty futures were trading around 11,071-level on the Singaporean Exchange.
As per a BSE filing, the appointment of the new auditor comes into effect from August 26. The decision was taken at the company's board meeting held on Monday.
Garg also talked about how there was a need for a framework to resolve stressed financial entities and that the Financial Resolution and Deposit Insurance (FRDI) Bill, which was dropped last year, should be revisited.
The plan has met with scepticism from banks in the consortium, so the company has approached prospective investors.
As per norms laid down by the banking regulator, lenders are required to sign an Inter-creditor Agreement (ICA) to finalize a resolution process. But the involvement of entities other than banks in this case has complicated the process.