DHFL reports fresh default on payment obligations of Rs 1,571 crore

Dewan Housing Finance Corporation (DHFL) has said it defaulted on its financial repayment obligations worth Rs 1,571 crore with regard to the issuance of bonds and commercial papers.

The defaults are related to three cases with regard to interest payment on non-convertible debentures (NCDs) and commercial papers (CPs), the company said in a statement.

DHFL defaulted on Rs 46.92 crore towards interest amount on secured NCDs (9.92 per cent and 9.4 per cent per 10 year tenor), on NCDs issued through a public issue for multiple tenors of amount involving the interest of Rs 363.77 crore and the principal amount of Rs 1,059.91 crore.

A default of Rs 100 crore occurred on CPs as well.

DHFL is the fourth-largest Indian housing finance company based on loans outstanding as of March. It has been facing a liquidity crisis since September 2018 but has paid over Rs 41,000 crore towards discharging its financial obligations.

The housing finance company has faced multiple rating downgrades in recent months. DHFL says it has been working towards resolving its liquidity crisis in a comprehensive and timely manner.

As a step towards resolution, it has formulated a draft resolution plan as required under the Reserve Bank of India's June 7 Prudential Framework for Resolution of Stressed Assets which has been submitted to the lenders.

Earlier this month, the special committee of lenders approved a draft resolution plan which DHFL formulated in consultation with financial adviser Ernst & Young.