DHFL Defaults Again, This Time Rs 25cr Interest to NCD Holders

Mumbai, Jul 30 (PTI) Crippled mortgage lender DHFL has again defaulted on an interest repayment worth Rs 25.06 crore on non-convertible debentures.

A total of six investors are impacted due to the default, which happened on Monday, the company informed the exchanges Tuesday evening.

The gross principal amount on which the default has taken place is Rs 274 crore, it added.

This is the fourth default by the crippled company since early June.

The secured NCDs carry a coupon of 9.32 percent and were issued for five years. The date of issue of the NCDs was not disclosed.

"As informed earlier, we are in discussions with the bankers for restructuring the liabilities and are working on a resolution plan to be submitted to the lenders," senior chief manager in the secretarial department PK Kumar said.

It can be noted that the going has been getting tough for the company since the troubles at the infra focused non- banking lender IL&FS went belly up. Experts, including the regulator RBI, has blamed the huge asset liability mismatch for the troubles.

DHFL, which reportedly owes banks and other financial institutions over Rs 1 trillion, has been selling assets to keep afloat and the promoter Wadhawan family which owns over 39 percent is also reportedly planning stake dilution.

Meanwhile, DHFL also informed the exchanges that it has completed sale of its education finance arm Avanse Financial Services to private equity fund Warburg Pincus for an undisclosed sum. The PE fund is reportedly buying 80 percent of Avasne.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)