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DHFL board approves plan to convert debt into equity, sell assets

DHFL and other shadow banking firms have been stung by a liquidity crunch following last year's collapse of IL&FS

DHFL
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Reuters Bengaluru
India's crisis-hit shadow bank Dewan Housing Finance Corp (DHFL) said on Friday its board had approved a plan that included converting debt into equity, even as it seeks to sell assets and raise more capital.

The conversion of debt into equity may result in a change in ownership, the company said in a regulatory filing, adding that the plan still needed shareholder approval.

DHFL, India's fourth-biggest housing finance company, has roughly Rs 1 trillion ($14.15 billion) of debt, and owes about 400 billion rupees to banks alone. The company hasn't been able to service its debt and it has defaulted
Topics : DHFL

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First Published: Aug 30 2019 | 5:09 PM IST

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