Banks are tapping the route to avoid haircuts while mutual funds have already taken 70% hit.

Even if the bankers agree on a deal under the ICA, it is not binding on funds.

The fund house has said that it has not done anything to disturb the Inter-Creditor Agreement process.

The acquisition, announced in December 2018, has received all required approvals from the Sebi, and other regulatory bodies.

The company had entered an agreement with Prudential Financial to divest its 50 per cent holding in DHFL Pramerica Asset Managers (DPAMPL).

DHFL Pramerica Medium Term Fund had invested 37 per cent of its portfolio in its parent company DHFL’s papers.

On Tuesday, DHFL paid Rs 962 crore as interest on some of the debentures.

Mutual funds collectively had an exposure Rs. 5,236.53 crore to DHFL debt, as on April 30.

Reliance mutual fund had four fixed maturity plans (FMPs) that matured on June 6 in which held DHFL securities in its portfolios.

The net asset value of several debt schemes fell by as much as 53 per cent in one day after DHFL delayed interest payments.

DHFL Pramerica Medium Term Fund, with assets of Rs 35 crore, saw its NAV plunge 52.99 per cent.

Most of these debt mutual fund schemes wrote off 75 per cent of their holdings in DHFL paper.

About 22 mutual funds together owned DHFL paper worth Rs 5,236 crore.

DHFL Pramerica Mutual Fund has decided to merge four of its debt mutual fund schemes.

A Credit Suisse report said that DHFL is among the largest borrowers from mutual funds.

25 mutual fund houses collectively hold DHFL paper worth Rs 8,650 crore as of December 2018.

Firm sold CPs worth ₹300 crore at a much higher yield, leading to ratings downgrade talk.