DHFL says not able to meet debt obligations

Mumbai: Dewan Housing Finance (DHFL) said it wouldn’t be able to meet debt obligations that are coming up for payments in the immediate future as the resolution plan is still pending with creditors.

“Given the ongoing discussions on the resolution plan with the lenders, who have signed the ICA (Inter Creditor Agreement), the company believes that its payment obligations falling due in the immediate future may not be met as per their existing schedule,” DHFL told exchanges in a filing.

It said the company and other lenders are engaging with trustees of bond holders to restructure the loans. Catalyst Trusteeship Services Ltd, one of the debenture trustees, is undertaking the process of seeking consent from bond investors to be a party to ICA. The company has been facing a liquidity crisis since September 2018. Since then, it has paid over Rs 41,000 crore in debt obligations. DHFL shares lost 3.64 per cent on a day the Sensex climbed 1.74 per cent.