DHFL readies resolution plan, shares rally 32%

Shares of Dewan Housing Finance Corporation (DHFL) climbed over 32 per cent on Tuesday after the company informed the bourses that the company’s special committee for debt resolution had approved the draft resolution plan that the company had formulated in consultation with the committee and its financial adviser Ernst & Young.

In a regulatory filing, the company said that there will be no principal haircuts for any creditor. It said the resolution plan to address asset-liability mismatch entails a moratorium on repayments.

DHFL is seeking funding from the banks/ National Housing Bank (NHB) for starting retail funding activity.


In another development, the debt-laden shadow bank said one of its auditors, Deloitte, Haskins & Sells LLP, has resigned.

In a letter to DHFL, Deloitte said it resigned in view of the matters stated in the shadow bank’s financial statements for the year ended March 31, DHFL said in a statement.

The shares of the company closed 32.06 per cent higher at Rs 55.40 on BSE.