Dewan Housing Finance Corporation (DHFL) has got investor proposals for buying stake in the debt-ridden housing finance company. The company is expecting lender’s approval on the final resolution plan by end of July.
In a board meeting that went on for six and a half hours till late on July 22, it was taken on record that the company received non-binding indicative term sheets as a part of the corporate restructuring plan.
Any proposals approved will constitute a part of the resolution plan, DHFL said in a statement to exchanges after the board meet. “There have been discussions for stake sale by the promoters to a strategic partner with further equity infusion,” it added.
The company’s promoters currently hold 40 percent stake.
DHFL also said that the company was in the process of submitting a resolution plan to the lenders and the lenders were expected to give an in-principle approval to the plan by the end of July.
DHFL said that the company planned to monetize its assets and was in talks with domestic banks, as well as international financial institutions, to sell off its retail and wholesale portfolio.
DHFL also said that it had cancelled the Employee Stock Appreciation Rights (ESAR) scheme and the rights granted under the plan with effect from March 20.
On July 22, DHFL said that its January-March quarter results were declared on the basis that the company was a going concern. “The ability of the company to continue as a going concern is predicated upon its ability to monetize its assets, secure funding from the bankers / investors, restructure its liabilities and recommence its operations,” it said.
Last week, the company clarified that it was still a going concern and was closely working with stakeholders and creditors to ensure a comprehensive resolution without any haircuts to lenders.
“It is expected that DHFL will be able to restart its business in August 2019 and scale it up in the months ahead,” the company’s Chairman and Managing Director Kapil Wadhawan said in a note on July 15.