Withdraw draft resolution plan of management: DHFL to stock exchanges

Dewan Housing Finance (DHFL) has informed the stock exchanges that they wish to withdraw the draft resolution plan that the erstwhile management had formulated and presented to all its institutional creditors , including banks, financial institutions, mutual funds, insurance companies and other institutional bond holders.

The draft resolution plan was as per the June 7 circular of the RBI. According to the plan, 2.3 per cent exposure to various categories of lenders — including debt from banks, bond holders, external commercial borrowings (ECB), borrowings from National Housing Bank (NHB), perpetual debt, commercial paper borrowings, and subordinate debt — was to be converted into equity at the price of Rs 54, following which the creditors would have owned 51 per cent stake in the company. DHFL is now under corporate insolvency resolution process as per the insolvency and bankruptcy code (IBC) and is the first financial services company to be brought under insolvency.